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Finance Minister Arun Jaitley will hold pre-Budget talks with apex industry chambers and trade sector representatives on Friday.
This will be part of the consultations with various stakeholders that Finance Minister Arun Jaitley plans to have ahead of the Union Budget 2014-15, which is slated to be presented in July.
This meeting with chambers is significant as they are likely to pitch for large-scale tax reforms, including early introduction of the goods and services tax regime.
The meeting comes at a time when the Indian economy has recorded sub-5 per cent growth for the second year in a row in 2013-14.
There is huge expectation that the new Government will take measures to kick-start the economy and bring back growth to 7-8 per cent.
With the Narendra Modi-led Government having a clear majority in the Lok Sabha, bringing about legislative changes in the Lower House may not be all that difficult, say economy watchers. It is only in the Rajya Sabha that the Government would have to work harder for passage of Bills, as the BJP does not have the necessary majority.
There are also a lot of expectations from the new Government with regard to adjustment of income tax slabs, as the UPA Government fell short of middle class expectations on this front to neutralise the runaway inflation.
India Inc is also looking forward to some indications on the roadmap for the new Direct Taxes Code.
While the UPA government was keen to implement the new Direct Taxes Code, it is not clear whether the Modi-led Government will go with the same of the Bill.
The Confederation of Indian Industry wants the new Government to remove “retrospective” tax amendments that is a headache for many foreign investors.
The Federation of Indian Chambers of Commerce and Industry has already urged the Government to focus on issues including inflation control, employment creation and skill development. Industry chamber Assocham has urged the Government to bring down the corporate tax rate from 30 per cent to 25 per cent besides doing away with surcharge.
It has also pitched for reduction of minimum alternate tax.
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