India Inc has stepped up the pressure on the government to shake off the policy inertia and tackle urgent economic problems. It has sent its policy wish-list to the Finance Ministry, reports CNBC-TV8 quoting sources.
Some of the demands included bringing in black money disclosure scheme for investment. Also, the corporates have urged the government not to withdraw the
SEZ incentives.
Under the SEZ Act, SEZ units get 100% tax exemption on profits earned for the first five years, a 50% exemption for the next five years and another 50% exemption on re-invested profits in the following five years.
Other demands included the clarification Income Tax department’s stance on foreign direct investment (FDI) via the Mauritius route. India Inc also insisted on introducing the goods and services tax by April 2012.
Amid more signs of a slowdown in the Indian economy, Finance Minister Pranab Mukherjee had met top industrialists of India Inc, including Ratan Tata, Anil Ambani, Sunil Mittal and Anand Mahindra on August 1.
Other top industry leaders like Narayana Murthy, Shashi Ruia, Y C Deveshwar, Sunil Munjal, Venu Srinivasan, GVK Reddy, GM Rao and RP Goenka also participated in the discussion on the economy.
Anil Ambani had asked for withholding tax on interest on ECBs to be exempted. He also urged investment in metro projects should be accelerated.
India Inc also supported expeditious environment clearance to coal mines.
Meanwhile, recently retired Infosys chairman Narayana Murthy has asked for speedy clearance for aircrafts of foreign clients. He also requested that income from onsite projects outside India to be treated as exports.
States should be able to clear investment proposals upto Rs 1,000 crore was the demand made by ITC chief YC Deveshwar.
The finance minister has written to six ministries (including Commerce, Telecom, Rural Development, External Affairs, Corp Affairs and Agriculture) on India Inc’s concerns.
Source : moneycontrol.com