New Delhi: Industry body CII today asked the
government not to lower the peak customs duty in the next
budget expressing fear that surge in imports could mar the
recovery process.
"Any reduction in customs duty at this juncture would
be counter productive as the surge in import from countries
extraordinarily supporting their domestic industry could mar
the recovery prospects...", CII said in its pre-Budget
memorandum for 2010-11 after meeting Finance Ministry
officials.
The peak customs duty should be retained at 10 per cent,
it said. However, it has recommended for the abolition of
customs duty on inputs such as non-coking coal, petroleum
coke, scrap of non-ferrous metals, ferro-nickel to reduce the
input cost of the user of these industries.
On direct taxes, CII has asked for reduction in minimum
alternate tax (MAT) rate and has suggested increase in
depreciation rates on plant & machinery to 25 per cent.
The government should also extend the scope of
investment-linked-tax-incentive offered to select sectors.
It said that a mechanism should be worked out by which
a substantial Rs 50,000 crore from Rs 2 lakh crore, held up in
various disputes and litigations for a long time, could be
raised if a fourth of the disputes are resolved.
PTI
First Published: Wednesday, December 16, 2009, 20:54