Simplification and Rationalization of the Contemporary Tax System would be on the wish list as the Government of India should not allow the deadlock on GST (Goods and Service Tax) to remain for an extensive period. It should finish the legal procedures by discussing with the various states and settle all unfinished matters associated to the implementation in order that the new taxation system can be introduced from April 1, 2012 to permit current players to devise their ventures and include their cost of operation. At this moment, it is highly advised that the rate of CST should be cut down to minimum 1% wef from April 1, 2011.
Infrastructure development is the core ingredient to attain and sustain 9% or perhaps double-digit economic growth. Government needs to roll out few incentive schemes to encourage private sector participation and step up investment in the infrastructure sector, especially in power, road, telecom, ports and airports projects
In order to boost Agriculture the government should introduce positive initiatives to attract investments in this sector. Since giving subsidy on fertilizers would impact its subsidy bill which is already stretched due to higher global crude prices, so the expectation from the government would be to come up with a nutrient based policy which favors the fertilizer manufacturing companies.
IT industry has also been contributing immensely to the GDP and to keep the momentum on, industry would appreciate government to oblige by simplifying the tax structure that would encourage investments in the sector and also extend tax benefits under the Software Technology Parks of India (STPI) scheme. From a common man’s perspective, tackling inflation would be of utmost priority along with continuation of stimulus packages. Considering the present inflationary pressures in a difficult macroeconomic environment, we would expect that the rate of basic customs duty should be brought down.
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