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Pre-budget consultations
Why is it in the news?
- Recently a meeting is held by Finance Minister with various stakeholders ahead of the presentation of the Union Budget next month.
More in the news
Various Deliberations:
- In a meeting, industry heads suggested various reforms and tax cuts to push investment and growth of the economy.
- Other suggestions by Industry:(1) Reduction in direct tax rate to a maximum of 18%.(2) Reducing the dividend distribution tax.(3) Reform of land and labour law.
- Finance Minister told industry heads during the meeting that the Central government has taken several steps make governance more efficient and effective.
- The minister argued that since 24% of the country’s total work force is in industrial sector, industry should be able to accommodate more work force.
- ASSOCHAM president recommended that government should provide 100 per cent depreciation in the first year of investment for all new foreign and domestic investments.
- CII also pitched for bringing down the dividend distribution tax to 10 per cent from the present 20 per cent while eliminating it at the hands of the investor.
- Agriculture Sector:(1) Agriculture experts suggested that the government take steps to boost investment in farm sector and enhance market access to farmers.(2) Solar energy may be treated as third crop to augment income of farmers besides resolving GST issues related to farmers producers’ organisations.(3) Incentives for agro processing units in the border districts and enhancing investments in R&D.
Source
Indian Express.