Industry chamber Assocham has demanded cut in effective corporate tax to 25 per cent, doing away with dividend distribution tax (DDT) and indexing of allowances and deductions under personal Income Tax with inflation.
In its pre-budget meeting with the Revenue Secretary last week, Assocham also demanded reduction of excise duty on Aviation Turbine Fuel (ATF), and a cut in customs duty rates on raw materials used in domestic
manufacturing.
It also suggested that Minimum Alternate Tax (MAT), which is levied at 18.55 per cent, should be abolished and demanded that relaxation in norms for start-ups.
“The effective corporate tax on distributed profit is over 48 per cent. Need to reduce to 25 per cent and gradually to 20 per cent,” Assocham said.
