Captains want tax sops from Arun Jaitley

India Inc urged new finance minister Arun Jaitley on Friday to lower tax rates and initiate bold reforms to kickstart the investment cycle and rev up the slowing economy.

In an over two- hour long pre- Budget consultative meeting with Jaitley, captains of industry also asked for an easing of gold import curbs, clarity on retrospective tax law amendment and early rollout of Goods and Services Tax and Direct Taxes Code.

Jaitley, on his part, said that it was a constructive meeting and promised to give a directional thrust to the economy to ensure better results. However, he pointed out that the economic situation is quite challenging.

According to sources, the finance minister will have to do a tightrope walk as liberal tax concessions would also mean a higher fiscal deficit.

The industry also demanded income tax exemption limit to be raised to raise to Rs5 lakh from Rs2 lakh and deferment of General Anti Avoidance Rule for, at least, next three years and exempting dividend from minimum alternate tax. Confederation of India Industry president Ajay Shiram said, " The vexed issued of retrospective tax amendment introduced by the UPA had adversely impacted the investment sentiment."

"There is also a need to give a boost to the telecom sector and auctioning of more spectrum," Bharti Enterprises chairman Sunil Mittal said.

Biocon chairperson Kiran Mazumdar- Shaw said that industry wants a boost for the manufacturing sector and job creation.

" Basically, the government is very committed to kick- start the economy and other issues discussed were pertaining to service tax and exemptions," she added.

Essar Group promoter Shashi Ruia, Suzlon Group chairman Tulsi Tanti and Videocon group chief V. N. Dhoot and PHDCCI president Sharad Jaipuria were also present. FIEO president Rafeeque Ahmed said that the minister has indicated that there will not be any populist measures in the Budget.

In Association with Mail Today