CII pushes for abolition of MAT in Budget

HYDERABAD: In its recent meeting with the finance ministry, the CII has stressed on the need to push for 8% growth. Prior to the imminent Budget, it has made certain key recommendations to the authorities for the overall improvement of the industrial climate.
The recommendations include abolition of 5% surcharge on personal and corporate tax, abolition of MAT, elimination of the dividend tax in the hands of the recipients, reduction of corporate tax rates of Indian as well as foreign companies to 30 %, elimination of 16% special excise duty within one year and setting 8% excise duty on textiles, garments and apparel, computer hardware and GC sheets.
Addressing a press conference, Sunil Kant Munjal, who led the CII delegation as chairman of the economic affairs committee said, “We have made a strong case for the growth of textiles and tourism.�
It has also recommended a fund for marketing and branding of Indian textiles abroad, a textiles modernisation fund for financing import of state-of-the-art equipment and a global textiles and garments outreach fund to help acquiring textile, garmenting and allied companies abroad.
For tourism, CII has suggested that it has to be a priority agenda — a Rs 1,000 crore sector employing 50m people by the year 2020.
To achieve this vision, CII has recommended setting up a Cabinet committee on tourism under the chairmanship of the prime minister, outlay on tourism to be at least 3% of total budget outlay for the next five years, setting up an Indian tourism marketing board like the Singapore tourism board, setting up a National Tourism Fund from the proceeds of the divestment of hotels, withdrawal of 10% expenditure tax and tourism industry be given infrastructure status for tax purposes.
CII recommendations also include that there has to be a major thrust in irrigation, if Indian agriculture has to benefit from a 3% compound annual growth rate over the next decade.