The PHD Chamber of Commerce and Industry today sought bold and innovative measures in the forthcoming Union budget to reverse the economic slowdown.
The newly-appointed chamber president Arun Kapoor said the financial year might end without achieving the growth targets of GDP, industry, agriculture and services sector as well as the targets in the areas of fiscal deficit, disinvestment, savings and foreign direct investment.
Kapur expressed concern over deteriorating performance of the infrastructure sector, decline in the capital goods industry, hardening of interest rates and the increased government borrowings.
He urged the government to take corrective measures like passage of all pending economic bills and speedier decisions on economic issues.
The chamber has, as part of its pre-budget recommendations, sought abolition of minimum alternate tax, expansion of customs and service tax bases, reduction in central excise duty rates and a gradual duty reduction in peak rate of customs duty.
PHDCCI said that the government should bring more goods under maximum retail price-based value system and the special excise duty be reduced to eight per cent to keep the maximum rate below 24 per cent.
The corporate tax rates for domestic companies should not be more than the maximum marginal rate for individuals and the tax rate should be adjusted accordingly in case of foreign companies.
In the areas of central excise, customs and service tax for 2002-2003, the chamber has suggested expansion in the tax base and bringing the over dependence on central excise to objective levels.
It has also urged a phased duty reduction in the peak rate of customs duty, including selective rationalisation along with other non-tariff barrier measures on imported goods, whose imports and price levels threaten the domestic industry.
While the special additional duty on customs should be withdrawn, central excise duty rates should be reduced. PHDCCI said that more services should be brought into the service tax net.
