By IANS
New Delhi : Business representatives have at a pre-budget meeting here Tuesday asked Finance Minister P. Chidambaram to lower personal and corporate taxes in the coming budget to maintain the growth momentum of the country’s economy.
Representatives from the Federation of Indian Chamber of Commerce (Ficci) and Industry and Associated Chamber of commerce and Industry of India (Assocham), among others, presented the finance minister their wish lists for the budget to be presented in February.
Ficci Chairman Habil Khorakiwala said corporate tax should be slashed to 25 percent to encourage the manufacturing sector in the country.
Assocham President V.N. Dhoot said income tax rate should be cut to 25 percent from 30 percent for incomes above Rs.500,000.
Industry bodies also asked the finance minister to introduce a goods and services tax from April 2010 to replace the present value-added tax regime.
Khorakiwala said India’s growth momentum of close to 9 percent could be sustained and even accelerated, given the potential for continued improvement in productivity, infrastructure facilities, market structures and linkages and the continuation of positive initiatives in the regulatory and policy framework.