NEW DELHI: India Inc called for a sharp reduction in corporate tax rates, complete elimination or a cut in the Minimum Alternate Tax (MAT) and higher public investment in infrastructure and social sector on Saturday.
They also suggested that the minimum exemption limit in case of personal income tax be raised to 5 lakh. Industry leaders also called for a reduction in interest rates for manufacturing and other sectors saying that after demonetisation banks are flush with funds.
The industry leaders submitted their demands to finance minister Arun Jaitley who met them at a pre-budget meeting. The FM urged the industry to increase private sector spending particularly in the infrastructure sector.
“We propose that corporate tax be brought down to 18% including all surcharges and cess. In return we can remove all tax incentives, concession and need no grandfathering of previous incentives,” Naushad Forbes, president of the Confederation of Indian Industry (CII) on said.