The demand from a section of the industry for imposition of a cess on corporate profits has found support from part of the Government itself.
The Ministry for Water Resources has urged the Finance Minister to levy a one per cent cess on corporate profits for the purpose of augmenting existing irrigation facilities, according to sources.
Earlier, Assocham had suggested that the Government impose additional cess on corporate profits in the Union Budget for 2007-08 and use the additional revenue exclusively to fund irrigation projects.
