Industry chamber Confederation of Indian Industry (CII) hopes for a rapid industry growth with the upcoming Union Budget 2010-11. CII feels that rationalization of direct taxes can be quite instrumental in helping the manufacturing sector to flourish by leaps and bounds.
In its pre-Budget proposal, CII highlighted the importance of investment-linked fiscal incentives owing to the ever increasing interest rates due to contracting monetary policy.
This year too the fiscal incentives for the chosen sectors could be similar as the previous year's like warehousing facilities for storing farm produce, setting up of cold chain, in laying and operating cross-country natural gas or petroleum oil pipeline network for distribution on common carrier principal etc.
“ While the current IIP growth figures are encouraging, account needs to be taken of the fact that the impressive figures are owing to a very positive base effect,” said CII.
CII has also been upfront about the rationalization of minimum alternative tax (MAT) which has been gradually increasing for past few years. The chamber is expecting a substantial deduction in MAT as it restricts the scope of incentives to the industry.
In its pre-Budget proposal, CII highlighted the importance of investment-linked fiscal incentives owing to the ever increasing interest rates due to contracting monetary policy.
This year too the fiscal incentives for the chosen sectors could be similar as the previous year's like warehousing facilities for storing farm produce, setting up of cold chain, in laying and operating cross-country natural gas or petroleum oil pipeline network for distribution on common carrier principal etc.
“ While the current IIP growth figures are encouraging, account needs to be taken of the fact that the impressive figures are owing to a very positive base effect,” said CII.
CII has also been upfront about the rationalization of minimum alternative tax (MAT) which has been gradually increasing for past few years. The chamber is expecting a substantial deduction in MAT as it restricts the scope of incentives to the industry.
