FICCI unveils 100-Day Action Agenda for new gov

29 May '09

4 min read

• Reduce interest rate on 'packing credit' from present levels of 10%-11% to 6% to facilitate more exports
• Initiate implementation of NMCC's recommendations

DISINVESTMENT
The total receipts from disinvestment between 2000-01 and 2004-05 totaled Rs 29,189.21 crore. Since 2005-06 no target has been set for disinvestment. The total receipts during 2005-06 to 2007-08 were Rs 3936.62 crore. Therefore, there is need to:
• Bring back disinvestment into the mainstream economic agenda
• Consider privatization of loss-making PSUs
• Make a clear announcement in the next 100 days about the disinvestment in other PSUs

EDUCATION
• Allow private sector to set up higher educational institutions as a Section 25 company to plough back surpluses for development and expansion
• Announce the setting up of an Education Promotion Finance Company along the lines of HDFC to provide educational loans at affordable rates
• Initiate work on a PPP model for primary education as has been the case with it is

FISCAL MEASURES
The current corporate tax rate exceeds 40% inclusive of surcharge, FBT and DDT. To reduce the tax incidence on corporates, FICCI suggests the following:
• Withdraw surcharge and announce road map to lower corporate tax to 28%.
• Abolish FBT, revenue from which was a mere Rs 4,251 crore in the last financial year.
• 100% export tax benefit to manufacturer-exporters under Section 80 HHC should be temporarily restored.
• VAT applicable for manufactured products should be uniform @ 4% in all states.

Federation of Indian Chambers of Commerce and Industry

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