Our Bureau

Hyderabad, Feb. 23

THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has asked the Union Government to give a fresh thrust to the disinvestment policy.

In a pre-Budget wish list released here on Tuesday, the apex chambers appealed to the Government to create a favourable climate to attract investments.

Calling for reduction in Service Tax, Mr O.P. Goenka, President of FAPCCI, said the Government should widen the tax base. Transporters, and not the service user, should be held responsible to pay the Service Tax.

On Corporate Tax, he said the rate should be lowered to 30 per cent from 36.6 per cent.

With regard to the personal taxation front, he suggested a two-rate tax structure - one at 20 per cent and other at 30 per cent. "This would eliminate surcharges," he commented.

Mr Goenka said corporates should get income-tax exemptions for investments made as part of social responsibility. This would encourage them to indulge in more spending in rural development.

(This article was published in the Business Line print edition dated February 24, 2005)
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