Industry chamber Assocham said with signs of recovery visible after the global meltdown, the government should reduce corporate tax to 25 per cent from 30 per cent to help small scale industries.
Industry chamber Assocham said with signs of recovery visible after the global meltdown, the government should reduce corporate tax to 25 per cent from 30 per cent to help small scale industries.
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"I think corporate tax should be reduced to 25 per cent following the signs of recovery. It would help small scale industries, which were largely affected (by the meltdown)," Assocham President Swati Piramal told reporters here.
She said with a reduction in corporate tax, there could be an acceleration in the country's growth.
Piramal, who was here to release a study conducted by the industry chamber said, a delegation from Assocham had met Finance Minister Pranab Mukherjee and sought continuation of the stimulus package.
She said from the industry's perspective, the stimulus package has to be extended some more time. On the proposed Goods and Services Tax (GST) to be made applicable from April this year, she said the central and excise duty should be introduced together initially as an interim measure.
The High Powered Committee of State Finance Ministers on Thursday had indicated that the GST, which will consolidate indirect taxes, may not be introduced as scheduled from April 1. The GST is expected to replace a slew of indirect taxes such as the excise duty, service tax at the Central level, and VAT at state level, besides surcharges, cesses and other local taxes.
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