The Hindu Business Line : Hindustan Chamber of Commerce moots proposals to boost core investment

To encourage investments in infrastructure, it has made a plea for 50 per cent of the investments to be allowed as deduction from taxable income. Such investment for 10-15 years should not be allowed as security for loans and can bear a tax-free interest of 4 per cent. This would help balance loss of revenue. This facility should be extended to listed public companies in infrastructure development, the memorandum said.

The ceiling limit of Rs 1 crore for small-scale industries exempted under excise duty should be increased to Rs 5 crore, and the scheme of exemption should cover all duties of excise levied under different Acts.

The duty should be restricted to two slabs, 8 per cent and 12 per cent.

The chamber has suggested that customs duty be standardised at 20 per cent of the CIF value on finished products and 10 per cent on raw materials, petroleum products and edible oils. Reduction of the duty may be deferred till there is stability in the exchange market.

A flat rate of duty may be introduced for agricultural products instead of the existing assessment on percentage basis.

Procedures at Port should be simplified and a monitoring committee formed to oversee clearance of goods.

The Finance Act of 2003 allows a foreign employee claim status of `not ordinarily a resident' for a maximum of two years.

This provision could be withdrawn and the employees must be permitted to claim such status for nine years as allowed earlier.

Partnership firms could be subject to the rates of tax as applicable to individuals but without exemption limit. Or a slab rate may be levied depending on the income of the firm.

The high-income category could also be given tax incentive for personal savings.

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