Don't levy new taxes; make sure the investment cycle returns: India Inc tells FM

Don't levy new taxes; make sure the investment cycle return
India Inc, on Wednesday, urged the finance minister P Chidambaram to not to introduce any new tax in upcoming Union Budget as it would not only create negative sentiments among investors but also push back the economic growth.

At a pre-budget meeting with Chidambaram, industry representatives urged the finance minister to drop ideas like inheritance tax and super-rich tax and instead look at providing a stable regulatory regime in the upcoming Union Budget.

"There should be no new taxes. We want to make sure the investment cycle returns... Inheritance tax is a bad idea. An additional tax can weaken the sentiment," Ficci President Naina Lal Kidwai said after following the meeting with finance minister.

"Inheritance would create negative sentiment. No country has it," Godrej said, adding the Budget should not create a negative perception like it did last time.

"We want a predictable regulatory environment... The auto industry shouldn't be treated as a golden goose that can be taxed," Mahindra Group Chairman Anand Mahindra said.

Media reports said that India Inc representatives also demanded early roll out of Goods and Services Tax (GST), among other things. They also asked the FM to accept Kelkar committee recommendations like start of disinvestment process earlier during a year, deregulation of diesel, no tax on transactions in commodity exchanges, unlocking of money stuck in tax litigation, etc.

Read more about: taxes
Story first published: Thursday, January 17, 2013, 10:30 [IST]
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