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India Inc anticipates 2% slash in peak customs duty in 07-08 Budget
26 Feb '07
4 min read
“Special attention to agriculture in Budget is requisite for increasing the productivity and sustaining 9 per cent GDP growth”, added ASSOCHAM Chief, Mr. Dhoot. In view of the need for a boost to the primary as well as higher education, the corporate sector predicts a higher allocation for this sector. 54 per cent of business leaders feel that this sector may get much needed support.
Infrastructure is another focus area for the government and about 63 per cent of the company heads states that a good number of tax sops are in waiting for the companies investing in sectors like roads, highways, ports etc. A majority of respondents anticipate a slew of measures to induce rural infrastructure investments. Seventy Four per cent of them feel that the investment inducing measures may include tax concessions, subsidies and deductions.
A majority of corporate India expects a cut in the corporate tax rate applicable on the foreign companies in the Budget, though a consensus could not be drawn as to the extent of reduction. Roughly 48 per cent of the CEOs are confident that the tax rate on foreign companies would be reduced to make it par with the India Inc at 30 per cent.
When asked about the possibility of structural changes in minimum alternate tax, 54 per cent of the respondents, feels that the rate may be tinkered. As many as 83 per cent of the respondents feel that there could be a change in service tax rate since the road map for the composite GST has already started. Corporates feel that in order to steer the financial markets, FM might reduce the investment limit from Rs. 10 lakh at present, but at the same time, upward revision of the short-term capital gains tax is also on the cards. 90 per cent of them were hopeful about broadening of the tax slabs in the Budget.
The respondents said that the FM may also remove the much debated Banking Cash Transaction Tax (BCTT) imposed at the rate of 0.01 per cent on withdrawal of cash by individuals and corporates beyond Rs. 25,000 and Rs.1,00,000 in a single day. Most of the CEOs and MDs have also exuded confidence that with buoyancy in tax collections, both direct and indirect, the Finance Minister will be able to reach close to achieving the targeted levels of fiscal deficit for year ending March 31, 2007.
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Infrastructure is another focus area for the government and about 63 per cent of the company heads states that a good number of tax sops are in waiting for the companies investing in sectors like roads, highways, ports etc. A majority of respondents anticipate a slew of measures to induce rural infrastructure investments. Seventy Four per cent of them feel that the investment inducing measures may include tax concessions, subsidies and deductions.
A majority of corporate India expects a cut in the corporate tax rate applicable on the foreign companies in the Budget, though a consensus could not be drawn as to the extent of reduction. Roughly 48 per cent of the CEOs are confident that the tax rate on foreign companies would be reduced to make it par with the India Inc at 30 per cent.
When asked about the possibility of structural changes in minimum alternate tax, 54 per cent of the respondents, feels that the rate may be tinkered. As many as 83 per cent of the respondents feel that there could be a change in service tax rate since the road map for the composite GST has already started. Corporates feel that in order to steer the financial markets, FM might reduce the investment limit from Rs. 10 lakh at present, but at the same time, upward revision of the short-term capital gains tax is also on the cards. 90 per cent of them were hopeful about broadening of the tax slabs in the Budget.
The respondents said that the FM may also remove the much debated Banking Cash Transaction Tax (BCTT) imposed at the rate of 0.01 per cent on withdrawal of cash by individuals and corporates beyond Rs. 25,000 and Rs.1,00,000 in a single day. Most of the CEOs and MDs have also exuded confidence that with buoyancy in tax collections, both direct and indirect, the Finance Minister will be able to reach close to achieving the targeted levels of fiscal deficit for year ending March 31, 2007.
GET LATEST UPDATE ON UNION BUDGET 2007-2006
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