FM urged to ensure cost of doing business is not be more than China, US and Japan
PHD Chamber of Commerce and Industry has called for tax rebate benefits on long-term consumers durables and real estate assets to enhance demand in the economy. The call was made during virtual Pre-Budget Interaction with Finance Minister.
PHD Chamber President Saket Dalmia said, “Enhance consumption by incentivising the consumer with wider tax rebate benefits for consumption expenditure and encourage the consumer to spend more on long term consumer durables or real estate assets such as a shop, or a second house.”
Dalmia said there must be focus on decriminalization and reduction in costs of doing business. For financial mistakes there should be financial redressal such as penalties and not imprisonment.
“We suggest decriminalization of offences in GST Law by increasing the threshold from Rs.5 crores to Rs.20 crores. These steps would go a long way in encouraging businessmen to expand their companies without fear of prosecution,” he said.
There must be focus on substantial reductions in the costs of doing business, especially at the MSME level. This would include reduction in cost of capital, power, logistics, and of land and labour.
Furthermore, costs of doing business should not be more than those in the top 3 manufacturing countries namely China, the United States and Japan, said Dalmia stressed.
He continued, “There is a need for calibrated and substantial expenditure by the Government to bolster demand and Ease of Doing Business through incentives on innovation and adoption of technology, especially for women start-ups and for R&D activity.”
“We suggest that there must be 1) Priority lending for MSMEs 2) Separate Production Linked Incentives (PLI) for MSMEs 3) Reduce imports from China of finished products to create a level playing field for the industry.
“There must be focus on developing the tourism industry for large-scale employment, especially in the backdrop of India’s G20 Presidency,” said Dalmia.
There must be focus on making tourism more inclusive and varied through concept driven tourism which involves utilising India’s cultural and natural heritage, such as spiritual tourism and create a pilgrimage circuit of the 12 jyotirlingas or island tourism, he suggested, calling for the development of the country’s more than 200 tropical islands.
Pointing out that most international tourist destinations do not attract GST and VAT, he suggested removal of 18% GST from tourism facilities and infrastructure.
The industry body recommended a special committee to discuss innovative, targeted ways of financing and adoption of green energy to off-set the long incubation period required in this sector.
Taxes on bio fuels should be brought to nil. This is an important step for rapid increase in production of bio fuels which is needed for energy security.
Import duty on electrolysers should be brought to nil. This single step will attract huge investment in Green Hydrogen and make India an export hub by 2030. There is no revenue loss incurred in doing this, as Green Hydrogen is not being produced in the country till date.
“Furthermore, all lending decisions and investments by Banks and NBFCs as well as all Government subsidies and grants should be linked with ESG scores,” said PHD Chamber of Commerce and Industry in a release on 24 Nov 2022. fiinews.com
