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IMC submits budget wish-list
December, 27th 2006
The President, Indian Merchants Chamber (IMC), Mr Narayan Patel, in an pre-budget submission to the Union Government on Indirect Taxes, said, "the real issue is no longer India's high rate of growth, but whether the country could sustain that rate of growth. The Union Budget 2007-2008 must make the high growth trajectory more sustainable." It has been suggested the Government move faster towards fuller Capital Account Convertibility to counter inflationary risks and lower indirect taxes to international rates. The memorandum also favours replacing multiple taxes with a Goods and Service Tax, as this would increase the tax-GDP ratio by 2 per cent. The IMC memorandum wants the government to tax agricultural income.
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