Mumbai, India (PressExposure) July 16, 2009 -- With the Union Budget announcement just around the corner, the demand by industry associations for tax reforms and fiscal incentives is slowly gaining momentum.
Apex industry bodies including the Confederation of Indian Industry (CII) and the Delhi Exporters Association (DEA) are seeking initiatives from the government like rationalisation of tax structure and greater incentives for investments.
The DEA has also sought the creation of a special additional fund worth Rs 5,000 crore to facilitate a liberal 'Market Development Assistance' for all exporters and encourage greater SME participation in international trade fairs and exhibitions.
"In order to bail out the SME sector from the current economic crisis, it is imperative that the government provide special concessional packages and look into the pressing issues that have been ignored so far," said A Gupta, Chairman of LN Engineering Works, a small-sized engineering firm in Kolkata.
The CII has also pitched for combining various cesses and surcharges into a single corporate tax in order to remove the multiple taxation system imposed on corporate houses. The apex industry body has also advocated in favour of 'incentivising investments' to promote industrial growth.
"Withdrawal of multiple taxes like value-added tax, central sales tax (CST) and fringe benefit tax as well as reducing the high borrowing costs will provide an impetus to the MSME sector and help them become globally competitive," said D Ghosh, an executive at Kamal Engineering Works, a small-sized engineering firm in Kolkata.
The DEA has also sought a drawback refund within 24 hours of the 'Let Export Order' to ease the liquidity situation.