FM promises stable tax rates, friendly tax regime
Ahead of the discussions for Union Budget for 2006-07 from next month, Union Finance Minister P Chidambaram has promised stable economic environment and tax rates and asked corporates to utilise the favourable climate to increase India's share in ...
By PTI |
CHENNAI: Ahead of the discussions for Union Budget for 2006-07 from next month, Union Finance Minister P Chidambaram has promised stable economic environment and tax rates and asked corporates to utilise the favourable climate to increase India's share in world trade.
"I can promise you a friendly tax administration. You will have a stable economic environment, stable tax rates and we promise you a hearing if you have a grievance," the Finance Minister said at the 47th AGM of Capexil (formerly Chemicals & Allied Products Export Promotion Council) here on Saturday night.
Chidambaram, however, defended various taxes imposed by the Government, saying taxes were important to "build roads, enhance capacity of the ports, establish power stations and to improve telecom connectivity."
"Some taxes have to be paid. Have not the taxes come down (over the years)? If more people pay taxes, you will pay less taxes," he said, responding to a plea by Capexil to do away with the Fringe Benefit Tax, banking cash transaction tax and the tax on exporting community. "The point is taxes are part of life... it is part of business," he said, but added that the Centre was rebating the customs and excise duties on exports.
Chidambaram said "India was on a good wicket today. But good wicket alone will not win matches. Only good players on a good wicket will win matches," he said adding "You must be aggressive players, find new products and reach out to newer markets."
Responding to another plea on DEPB rates by the exporting community, Chidambaram said "it will be addressed through suitable amendments in the law."
The Comprehensive Economic Cooperation Agreement (CECA) with Singapore and the Free Trade Agreement (FTA) with Thailand have helped the country to boost its trade. "All empirical evidence shows that lowering of tariff increases trade," Chidambaram said, adding that the SAFTA coupled with efforts to improve relations with Islamabad would help the country to increase the direct trade with Pakistan.
"We look to the future with great confidence," he said.
Stating that there was "no room for export pessimism", he said there was great demand for goods and services across the world. In the coming years, both India and China would have a major share of the world's trade of goods and services.
"I can promise you a friendly tax administration. You will have a stable economic environment, stable tax rates and we promise you a hearing if you have a grievance," the Finance Minister said at the 47th AGM of Capexil (formerly Chemicals & Allied Products Export Promotion Council) here on Saturday night.
Chidambaram, however, defended various taxes imposed by the Government, saying taxes were important to "build roads, enhance capacity of the ports, establish power stations and to improve telecom connectivity."
"Some taxes have to be paid. Have not the taxes come down (over the years)? If more people pay taxes, you will pay less taxes," he said, responding to a plea by Capexil to do away with the Fringe Benefit Tax, banking cash transaction tax and the tax on exporting community. "The point is taxes are part of life... it is part of business," he said, but added that the Centre was rebating the customs and excise duties on exports.
Chidambaram said "India was on a good wicket today. But good wicket alone will not win matches. Only good players on a good wicket will win matches," he said adding "You must be aggressive players, find new products and reach out to newer markets."
Responding to another plea on DEPB rates by the exporting community, Chidambaram said "it will be addressed through suitable amendments in the law."
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The Comprehensive Economic Cooperation Agreement (CECA) with Singapore and the Free Trade Agreement (FTA) with Thailand have helped the country to boost its trade. "All empirical evidence shows that lowering of tariff increases trade," Chidambaram said, adding that the SAFTA coupled with efforts to improve relations with Islamabad would help the country to increase the direct trade with Pakistan.
"We look to the future with great confidence," he said.
Stating that there was "no room for export pessimism", he said there was great demand for goods and services across the world. In the coming years, both India and China would have a major share of the world's trade of goods and services.
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