India Inc has pitched for lowering of corporate tax rate and a roadmap to phase out incentives in the forthcoming Budget.
“It is suggested that the corporate tax rate should be brought down to 23 per cent,” the Confederation of Indian Industry (CII) said in its pre-Budget memorandum and suggested that the roadmap to eliminate incentives must take into account public comments.
Finance Minister Arun Jaitley had, in Budget 2015-16, announced a plan to bring down corporate tax rate to 25 per cent over the next four years and the Finance Ministry had also come out with a discussion paper on winding up all exemptions.
“It is suggested that minimum alternate tax should be abolished in view of removal of all incentives or, alternatively, the rate be brought down to 10 per cent,” the CII said.
It has also asked the government to maintain the existing rates of service tax at 14 per cent and central excise duty at 12.5 per cent. Further, it has sought credit of the Swachh Bharat Cess, and its utilisation against payment of excise duty and service tax.
Seeking early implementation of the Goods and Services Tax, the industry body has also asked the government to announce a revised roadmap for its roll out. In this regard, it has called for reducing the central sales tax from two per cent to one per cent in view of the delay in implementing the GST.
The CII has also sought early implementation of the recommendations of the Tax Administration Reforms Commission. “The TARC, constituted to examine and suggest reforms focusing primarily on tax administration, had come up with some path breaking recommendations which should be given consideration,” it said.