FM requested to extend TUF scheme at Pre-budget meet

10 Jan '07

2 min read

The Union Finance Minister, Shri P. Chidambaram met representatives of industry, industry associations and chambers of commerce as part of his pre-budget 2007-2008 consultations with various interest groups and experts. The Finance Minister opened the discussion by requesting the participants to give their views on specific actionable points-tax and non-tax - to impart a new impetus to growth and investment by removing the existing obstacles.

Some of the important suggestions made by the participants during the meeting are as follows:

General:
- Provide incentives for Research and Development (R&D) activities for all sectors;
- Set up a Skill Development Bank and facilitate intermediation of knowledge;
- Encourage investment in the infrastructure sector by providing/enhancing tax exemptions for such investment;
- Move towards an effective GST rate of 15 per cent in the next few years;
- Promote India as a Corporate Headquarter by giving tax incentives;
- Give infrastructure status to gas pipelines and associated storage facilities and mega steel projects;

- Give exemptions for investment in agriculture related sectors like cold-chains etc;
- Increase depreciation rate to 25 per cent per year for tax purposes;
- Remove Fringe Benefit Tax (FBT) on expenditure incurred on sales promotion;
- Remove anomalies in the Cutsoms and Excise duty structures;
- Provide incentives for Indian companies to become global.

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