New Delhi: India Inc’s recommendations for the Budget 2021-22 take cognizance of the stressed fiscal situation due to a sharp decline in revenue collections following the Covid-19 outbreak-induced economic slowdown, the Confederation of Indian Industry said.
The industry body’s recommendations on taxes are focused on clarity in law, simplification of procedures, reduction of litigation and facilitating business transitions, which will make doing business easier, it said.
CII suggested that the limit prescribed under Section 36(1)(viia)(a) of the Income-Tax Act for provision of bad and doubtful debts of banks should be increased to 15% from the existing 8.5%.
With regard to facilitation of foreign investment, specific clarification should be provided so that banking and broking service providers are not held as representative assessees of their clients, CII said.
The Covid-19 pandemic induced a global economic downturn that is fraught with severe challenges, but India is looking to not let the crisis go waste by developing policies that create opportunities for the country, it said.
CII also suggested a graded roadmap towards competitive import tariffs over the next three years, with lowest or nil slab 0-2.5% for inputs or raw materials, highest slab of 5-7.5% for final products and 2.5-5% for intermediates.
“This will help Indian industry integrate into the global value chain while becoming competitive with its goods and services in the world markets,” it said.
Besides, following the vision of Prime Minister Narendra Modi on Atmanirbhar Bharat (self-reliant India), CII has proposed a set of general principles to guide the import tariff structure along with a roadmap to encourage and calibrate domestic manufacturing in line with global trade trends. This is expected to strengthen manufacturing capacities and boost its export competitiveness as per shifting global value chains in the next three to five years.
Source:-economictimes.indiatimes.com