Jaitley’s investment call

The Union Finance Minister Arun Jaitley has asked the representatives of Business and Trade Sector to increase the private sector spending especially in infrastructure sector.

Speaking during Pre-Budget Consultative Meeting with the representatives of Indian Trade and Industry Associtions/Groups in New Delhi on November 26, he said the Government has taken many steps to improve governance by bringing in transparency and efficiency through systematic changes.

Jaitley pointed out that the Government has given greater thrust on fiscal federalism and improving business environment through reforms in policies and regulation among others.

The industry captains responded with calls for cut in Corporate Tax and withdrawal of tax incentives which will result in higher collections due to better compliance and will make India an attractive investment destination.

Other suggestions include complete elimination or a major reduction in Minimum Alternate Tax (MAT) to encourage higher public investment in infrastructure and social sector.

The industry leaders also want to see higher investment in irrigation and rural infrastructure sector as this will increase the spending capacity of the rural people which in turn will create demand for various products and increased economic activity.

Their calls included focus on skill development by putting more resources on training of trainers’ Programmes; tax concession to both individual tax payer and Corporate Sector. Minimum exemption limit in case of Personal Income Tax be raised to Rs.5 lakh.

Interest rate be reduced for manufacturing and other sectors especially for micro, small and medium enterprises, since banks’ cash deposits will increase after demonetization. Penalize bouncing cheques and strengthen cheque-based transactions.

Introduce measures to encourage private sector investment in infrastructure and promote women entrepreneurs. fii-news.com