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Revenue Secretary to seek industry views on Budget issues

Last Updated: Sunday, December 9, 2012 - 14:27

New Delhi: In the run-up to the Budget, Revenue Department will hold consultations with top industry bodies this week to work out tax proposals for 2013-14 to promote growth and boost economy.

Revenue Secretary Sumit Bose will meet representatives of Ficci on Monday, followed by Assocham and CII on December 12 and 13 respectively, sources said.

Bose has already met PHD Chamber of Commerce and Industry last week.

The issues raised during these meetings will be followed up at the customary pre-Budget consultations by Finance Minister P Chidambaram.

The 2013-14 Budget will be the last regular Budget of the UPA government as general elections are due in early 2014.

The meeting assumes significance in view of decline in industrial growth in the current fiscal. In the first six months (April-September) of the current fiscal, factory output growth was a meagre 0.1 percent, down from 5.1 percent in the same period of 2011-12.

Industry has been demanding cuts in excise duty and corporate tax, as well as incentives to promote investments.

Economic growth has fallen to 9-year low of 6.5 percent in the 2011-12 fiscal. In the current fiscal, the growth is likely to be at decade's low with the RBI projecting 5.8 percent expansion.
In the first half of the current fiscal, the growth has fallen to 5.4 percent, as against 7.3 percent in the year-ago period.

Assocham has demanded a cut in excise duty and service tax to 8 percent, from the existing 12 percent, and increase in personal exemption limit to spur the slowing economy.

PHD Chamber, in its recommendation, has asked the government to reduce corporate tax rate to 25 percent and cut minimum alternate tax rate to 10 percent in Budget 2013-14.


First Published: Sunday, December 9, 2012 - 14:27
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