Kolkata, June 11 (IANS) Emphasising on the need for regaining the growth momentum, a business chamber has urged the central government to bring down the corporate tax rate to the global average of 25 percent and remove levies like surcharge and education cess to generate more investible surplus with the corporates.
In a meeting with senior union finance ministry officials ahead of the central budget, a delegation of the Indian Chamber of Commerce, Kolkata, also strongly objected to the proposed GAAR (General Anti Avoidance Rule) rules.
"The Chamber observed that even the talk of introducing the GAAR must now be dropped to dispel the psychosis of uncertainty among investors, both foreign and Indian. Further, the practice of Retrospective amendment of tax laws must be given a go by at this juncture," said an ICC statement Wednesday.
The Chamber spoke of the necessity to incentivise investment flows and suggested restoration of the earlier depreciation rate of 25 percent and extension of the additional depreciation of 20 percent to all machinery and plant.
Underscoring the need for brand building to make Indian products globally competitive, the ICC said five percent of turnover of Indian brands should be admissible as standard deduction for Income-tax purposes or a weighted deduction of 200 percent of the relevant expenditure on Brand Building should be allowed as deduction.
On indirect taxes, the Chamber strongly underlined the need to introduce the Goods and Service Tax urgently, which would help to bring down cost of manufacture by avoiding cascading effect of taxes.
"The Central Sales Tax should also be brought down from 2 percent to 1 percent," the delegation said.
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