Restrict corporate tax at 25 pc, says chamber to FMNEW

Submitting the Budget proposals to Arun Jaitley, PHD Chamber President, Gopal Jiwarajka demanded that corporate tax rate should not be more than 25 per cent from the headline rate of 30 percent and 34.6 percent with cesses and surcharges. 

Though the incentives given on promoting cash less transaction were appreciable, Jiwarajka suggested more digitalisation of transaction such as RTGS and NEFT should also be free of transaction costs. “As GST is going to become reality soon, we suggest that peak rate should be moderated to be level of 20 percent. The show cause notice should also be retained at 18 months instead of 36 months. Anti profiteering clause should also be removed from GST,” he noted. 

The Chamber also argued that time has come to increase the rebate on interest paid on housing loan from the current level of Rs 2-lakh to Rs 3.5-lakh as it would boost demand in the real estate and construction as also spur up economic sentiments with positive multipliers.  

It also emphasised the need for Stressed Assets Fund to be opened through escrow accounts to  complete all pending housing projects so that commitments made to buyers are fulfilled.