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Assocham's Budget wish-list
January, 09th 2007
Besides seeking reduction in corporate tax to 25 per cent from the existing 30 per cent, industry chamber Assocham will also urge the Finance Minister to set up a committee comprising representatives of the Centre and states to finalise the structure for the Goods and Services Tax (GST) during its pre-budget discussions on Tuesday. The replacement of multiple taxes by the GST will increase the tax GDP ratio by two per cent with Rs 70,000 crore per annum, according to the chamber. Apart from providing revenue buoyancy, the GST will simplify the tax structure, reduce tax administration and compliance cost. It will also improve the competitiveness of the domestic industry by eliminating the cascading effect of taxes on production cost.
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