For the Union Budget which will be unveiled by Finance Minister, Arun Jaitley on February 1, Corporate India wants the government to slash corporate tax rates, introduce steps to strengthen dispute resolution mechanism and reduce litigation as well as incentivise digital transactions.
Apart from all these, the corporate industry also wants the government to pay attention to infrastructure, reduce personal income tax rates and introduce measures to widen tax base. Pankaj Patel, Ficci President stated that, the government has paid attention towards lowering corporate tax rate since last year with the target to bring it down to twenty five percent by 2020. But, it has been a slow progress and only a handful companies have benefitted from the new tax regime, he added. Also, he stated that he expects the entire process to gain some momentum this Union Budget.
According to Mr. Patel, easy financing needs to be made available for the housing sector and lending rates should also be lowered. In order to encourage tax compliance and boost consumer spending income tax rates for individuals need to be reduced, he stated.
Assocham, another industry body feels that the greatest challenge for the government will be to revive urban consumer demand as well as offer the required stimulus to rural economy that has suffered badly after the demonetisation move.
CII (Confederation of Indian Industry) is of the opinion that in the budget, the government should reduce corporate tax rate to eighteen percent with more economic activity coming into the tax net post demonetisation. Chandrajit Banerjee, CII President stated that though commendable steps have been taken by the government and also ensured fair provisions to reduce and minimize unnecessary litigation but further steps need to be taken to strengthen dispute resolution mechanism when it comes to indirect and direct taxes.