Challenges facing economy correctly identified: MCCI
FE Report | Wednesday, 11 June 2008
The country's major chambers gave Tuesday a mixed reaction over the proposed budget for the fiscal 2008-09.
The Metropolitan Chamber of Commerce and Industry (MCCI) feels that the budget for 2008-2009 has correctly identified the challenges facing the country's economy.
In its post-budget reaction, the elite chamber has also said the budgetary provisions will help tackle the challenges in a right way.
It also commended the package of fiscal incentives announced for the industrial sector saying it is heartening to note that the finance adviser accepted a number of proposals, which were earlier submitted by the MCCI, like reduction of corporate tax rates, abolition of turn-over tax, continuation of tax holiday, introduction of 4-tier customs duty, continuation of Pre-Shipment Inspection (PSI) Scheme, etc.
"These will go a long way to help trade and industry at this critical time," it said.
However, the MCC feels that like other corporate tax-payers, it would have been advisable to give the same tax treatment to insurance companies, banks and other financial institutions as it is done in other neighbouring countries like India.
The chamber urged that the position be reviewed and the tax rates for banks, insurance companies and other financial institutions be the same as it is for other corporate tax-payers.
Similarly, it noted, withdrawal of the tax concession to dividend income of the corporate tax-payers is regrettable.
The government should review the provision and allow the concession to continue in the larger interest of the capital market and corporate profitability, it said.
The MCCI is particularly happy to see that special attention has been given to 'development of agriculture."
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The Metropolitan Chamber of Commerce and Industry (MCCI) feels that the budget for 2008-2009 has correctly identified the challenges facing the country's economy.
In its post-budget reaction, the elite chamber has also said the budgetary provisions will help tackle the challenges in a right way.
It also commended the package of fiscal incentives announced for the industrial sector saying it is heartening to note that the finance adviser accepted a number of proposals, which were earlier submitted by the MCCI, like reduction of corporate tax rates, abolition of turn-over tax, continuation of tax holiday, introduction of 4-tier customs duty, continuation of Pre-Shipment Inspection (PSI) Scheme, etc.
"These will go a long way to help trade and industry at this critical time," it said.
However, the MCC feels that like other corporate tax-payers, it would have been advisable to give the same tax treatment to insurance companies, banks and other financial institutions as it is done in other neighbouring countries like India.
The chamber urged that the position be reviewed and the tax rates for banks, insurance companies and other financial institutions be the same as it is for other corporate tax-payers.
Similarly, it noted, withdrawal of the tax concession to dividend income of the corporate tax-payers is regrettable.
The government should review the provision and allow the concession to continue in the larger interest of the capital market and corporate profitability, it said.
The MCCI is particularly happy to see that special attention has been given to 'development of agriculture."
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