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FICCI calls for cut in corporate, personal income tax rates
November, 23rd 2007
The Federation of Indian Chambers of Commerce and Industry (FICCI) has called for a reduction in corporate and personal income tax rate to 25 per cent.

The industry body has also asked the Government to abolish dividend distribution tax and minimum alternative tax and introduce incentive for sunrise industries.

In a representation to the Revenue Secretary, Mr P.V. Bhide, FICCI has also asked for reduction in the excise duty rate from 16 per cent to 12 per cent in 2008-09.

There is also a need for alignment of customs tariff with calibrated internal reforms and exemption to exploration and production activities from service tax, a FICCI release said.

Excise cut

The representation also made a plea to reduce excise duty on synthetic fibres, PP fibre and filament yarns along with their raw materials starting from PX, PTA, MEG, caprolactum to 4 per cent with optional route.

On oil & natural gas, the industry body suggested that companies engaged in the commercial production and refining of oil should be given the flexibility to choose any seven consecutive years in which the deduction can be claimed, out of the first 15 years.

To encourage environment-friendly manufacturing, the Government should help industry by eliminating import duties on pollution control equipment, FICCI said.

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