The Hindu Business Line : India Inc welcomes steps; wary about cess on Central taxes

INDIA Inc has welcomed the final Common Minimum Programme (CMP) announced on Thursday by the United Progressive Alliance Government but has at the same time cautioned that the imposition of a new cess on Central taxes for providing subsidy on education can result in a plethora of such cesses.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the entire funding structure for the education sector should be recast by eliminating subsidisation of higher education and re-directing such funds into primary and vocational education.

On the cess issue, the Confederation of Indian Industry (CII) has said that the funds collected should not be lost in the Consolidated Fund of India, but be utilised for the specific purpose for which it is being levied. ``The proposal will put a very marginal burden on the individual. If the intention for which it is being levied is met then neither any industry nor any Indian should have a problem,'' CII officials said.

Mr M.K. Sanghi, President of the Associated Chambers of Commerce and Industry (Assocham), said ``An emphasis on education is required, but the entire aspect has to be looked into carefully. It should be decided in advance how the cess is to be implemented and subsequently utilised.''

Overall, the chambers have welcomed the CMP terming it progressive and forward looking. According to the PHD Chamber of Commerce and Industry (PHDCCI), the CMP is an honest attempt to blend social priorities with policies, aimed at sustaining higher rate of growth.

Meanwhile, on the issue of disinvestment, the Standing Conference of Public Enterprises (SCOPE) suggested that part of the disinvestment proceeds be specifically earmarked for training of employees to facilitate their redeployment and modernisation and upgradation of other PSUs.

More Stories on : Politics | Taxation | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
CMP balances reforms with other economic concerns — All subsidies to be targeted at the poor, needy

`Electricity Act review unwarranted'

India Inc welcomes steps; wary about cess on Central taxes