New Delhi, Business chambers suggested various steps, like fiscal easing to improve tax collections and discussed bottlenecks facing the industry with Finance Minister Nirmala Sitharaman at the third pre-budget consultations here on Tuesday.
The main areas of discussion, included the regulatory environment impacting private investment and measures for promotion of exports amid rising protectionist tendencies, said an official statement.
“The Finance Minister and her team are well aware of the economic headwinds. We suggested fiscal easing, but didn’t suggest any change in the personal income tax as it’s not needed at present,” said Vikram S. Kirloskar, President of the Confederation of Indian Industry (CII).
“We need to bring ‘double tax deduction scheme’ for inter-nationalisation of the micro, small and medium enterprises (MSMEs) to allow them deduct against their taxable income, and doubling of qualifying expenses incurred for approved overseas activities, like market preparation, exploration, promotion and presence,” said Ajay Sahai, President of the Federation of Indian Exports (FIEO).
A ceiling of $2,00,000 could be put under the scheme to limit investment and tax deductions, he said and called for an exports development fund.
“The government wants to reduce or eliminate these bottlenecks the earlies. It has cut corporate tax, which will make the industry more competitive,” said Sandip Somany, FICCI President. Setting up of a special fund for MSMEs was also suggested, he added.
Somany said the Minister had called a separate meeting on taxation on December 19 where he would give his proposals.
The meeting was also attended by Minister of State for Finance and Corporate Affairs Anurag Thakur, Finance Secretary Rajeev Kumar, Expenditure Secretary Atanu Chakraborty and Revenue Secretary Ajay Bhushan Pandey.
