New Delhi: Confederation of Indian Industry on Monday called for lowering of corporate tax in order to boost growth and investment in the pre-Budget consultation meeting.
The CII called for lowering corporate tax rates, maintaining the peak rate of customs duty, kickstarting government expenditure, and rationalising TDS as well as dispute resolution provisions.
"Employment creation needs a strategic boost, including from the lens of revenue generation," stated Vikram Kirloskar, President, CII, suggesting empowered experts to drive these sectors in mission mode for generating jobs. There is a need for higher export incentives to help Indian exporters address the cost disadvantage in global markets," added Kirloskar.
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"India currently has one of the highest corporate tax burdens among comparable economies. In addition to corporate tax and dividend distribution tax, MAT is also levied. A lower tax rate is the need of the hour for growth and investments. The CII emphasized that GST data could be leveraged to further widen the direct tax base, using big data," CII said.
Several suggestions were made on the direct tax structure. CII noted that dividend distribution tax should be rationalised to 10 per cent and should be taxed at the hands of the recipient Long Term Capital Gains tax on equities and MAT should be removed, stated CII.
For a robust R&D footprint, the weighted deduction for R&D should be extended for a further period of 10 years.
