InvestorQ : Has there been a pre-budget demand to reduce the tax rates to 15%? What are the other demands made ahead of the Union Budget?
Aashna Tripathi made post

Has there been a pre-budget demand to reduce the tax rates to 15%? What are the other demands made ahead of the Union Budget?

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Tisha Malhotra answered.
2 years ago
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Yes reduction of tax rates to boost consumption has been a major demand from industry bodies ahead of the Union Budget announcements. Some of the other demands made by the industry associations ahead of the budget are as under.

· ASSOCHAM has called for reduction in income tax breaks for individual tax payers. It has called upon the finance minister to simplify this structure and convert this rebate into an exemption and raise the basic exemption limit for income tax payers to Rs5 lakhs. This is likely to boost consumption and give a boost to demand in the economy.

· FICCI has called for immediate and aggressive reduction in interest rates to help the businesses get funding at low rates. They have called for rate cuts of 100-150 basis points. The intent is to bring down the cost of funds for industry and encourage capital investments.

· This is the specific query you had asked for. CII has asked for a cut in corporate tax rates to 15%. Effective 20 September, existing companies will pay corporate taxes at 22% while new manufacturing businesses will pay at 15%. CII has asked the FM to scrap this distinction and offer 15% tax rate to all businesses in India.

· CAIT has asked for a specific rescue package for the SME sector, which has been suffering since demonetization and GST introduction. The demand is to free the SMEs from multiple laws and multiple regulatory authorities. SMEs also need easier availability of financing, single-window clearance & compliance for SMEs and ensuring refunds and GST credit on export paid on time.

· CREDAI has sought to address the problems of realty sector, which has been under stress after the RERA Act was passed. It has recommended that registration under RERA be allowed once the primary approval of building plans has been obtained by the promoter. CREDAI has also called for rescue package for NBFCs in the form of liquidity funding and partial guarantee financing by banks since NBFC credit is a primary driver of mid-segment realty sector growth.

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