NEW DELHI: In a meeting with Finance Minister Nirmala Sitharaman, industry leaders on Tuesday suggested reduction in corporate taxes, removal of tax exemptions and a single window for FDI clearances in the coming Union Budget.
In a separate meeting, agricultural experts suggested that the government step up public investment in agriculture and ease rules on market access to farmers.
Representatives of industry, services and trade sectors submitted several suggestions that ranged from policy initiatives like land reforms, simplification of the tax regime, further relaxation of Foreign Direct Investment (FDI) norms and creation of employment among others.
“We suggested corporate tax reduction along with the removal of exemptions. We also suggested to the government to revisit taxes on equity. Equity needs to grow as it makes up investment. We also suggested setting up a structure where bottlenecks can be found and released,” Vikram Kirloskar, President, CII, said.
Assocham recommended that 100 per cent depreciation should be permitted in the first year for all new investments, domestic or FDI.
“After dismantling of FIPB, FDI proposals are dealt with by the concerned sectoral ministry. This is causing significant delays in the approval process. Therefore, it is suggested to have a single-window for such cases. We suggest a country-specific desk be set up for major FDI source countries,” said Assocham president Balkrishan Goenka.
The declining flow of credit to the export sector is a key issue, according to Ajai Sahai, director general and CEO, Federation of Indian Export Organisation.
“Liquidity challenge at GST front has to be looked into. Upfront payment of GST are causing a problem to exporters. So, we are awaiting the rollout of e-wallet,” Sahai said.
Earlier in the day, Sitharaman held a separate meeting with experts from agriculture and rural sector, who requested the government to take steps to boost investment in the farm sector and enhance market access to farmers.
What the agriculture sector wants
Farm sector experts has sought increased investment in micro-irrigation and solar pumps, financial incentives to states for implementing agricultural market reforms, filling up of vacancies in agricultural universities, and promotion of handlooms in northeastern states.