At a prebudget meeting with Finance Minister P.Chidambaram, representatives of industry chambers, including the Confederation of Indian Industry(CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM), asked the government not to impose Higher tax on High Income individuals, saying it would discourage entrepreneurship, while seeking early implementation of the Goods and Services Tax (GST) and continuance of the existing corporate tax rate.
They also cautioned that it could lead to Professionals relocating to low tax domiciles such as Singapore, Dubai or London.
FICCI President Naina Lal Kidwai, recommended that maximum rate of 30% be made applicable for an income above Rs 20 Lakh(as against the existing threshold of Rs 10 Lakh).
The Centre should reach out to State governments and come out with a clear plan of implementation and timing of GST at the earliest.
Assocham President Rajkumar Dhoot said, Tax the rich but tax them reasonably. The rich have money and with that money they invest in the country, which generates jobs. The investments from the rich men also give Excise duties, sales tax and hence generate revenues also.
CII President Adi Godrej said, Taxing the rich more and inheritance tax were phenomenon of developed economies.
Mr Chidambaram's specific request to indusry was to provide ideas by which investements could be revived both foreign and domestic.
Courtesy: THE HINDU
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