The Hindu Business Line : FICCI seeks tax sops for infrastructure projects

THE Federation of Indian Chamber of Commerce and Industry has urged the Government to encourage infrastructure development through investment-oriented tax breaks.

It calls for hundred per cent tax holiday for 10 consecutive years during the first 15 years after commencement of operations.

The proposal emphasises the need to develop areas such as hydrocarbons, power, telecom, housing, industrial parks, shipping, tourism among others and asks for a variety of incentives and duty benefits for the same.

In a pre-budget memorandum on tax proposals submitted to the Finance Minister, the chamber underlined the need to reduce administration, compliance and transaction costs and the need for simplicity and transparency in tax laws to generate better compliance and higher revenue collections.

On the indirect taxes front, the memorandum suggests amendment of the Central value-added tax rules to extend the eligibility criteria for availing credit to purchases made by manufacturers.

The criteria should also be extended to goods received at the factory for direct or indirect use in business, as this would be reflected in the price of the final product, it said.

The chamber has pointed out that all services should be brought under the purview of tax net barring basic essentials and public utilities. For this, the Government should announce a negative list.

The memorandum also laid emphasis on a number of sectors that need to be provided incentives such as food processing, especially in the context of its ability to support agriculture and create new employment opportunities.

The other sectors that need fiscal support include textiles, tyres, consumer electronics and durables, cement, pharmaceuticals, steel and paper, among others.

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