hi INDiA Copyright 2022
New Delhi, January 14
The industry’s expectations from the Budget revolve around simplification of new initiatives announced over the years and timely execution of major infrastructure projects.
In pre-Budget memoranda submitted to the government, both apex chambers of commerce — FICCI and CII — have sought continuation of public welfare schemes such as Ujjwala, PM Gramin Sadak Yojana and low-cost housing.
In pre-Budget memoranda submitted to the government, industry bodies have sought continuation of public welfare schemes such as Ujjwala, PM Gramin Sadak Yojana and low-cost housingThe industry also expects the government to extend by two years the tax break it had announced for new manufacturing unitsThe CII has also sought a well-defined structure for taxation of capital gains
The industry also expects the government to extend by two years the tax break it had announced for new manufacturing units whose sunset date of March 31, 2023, has become difficult because of intermittent Covid-related disturbances.
The industry also focused on faceless assessment scheme, seeking its extension to mid and large-sized taxpayers. It has also sought the speedy setting up of a Dispute Resolution Committee due to the substantial litigation that this scheme has spawned.
Pointing out that typically 20% of project cost is locked up in bank guarantees (BGs), the CII said of the expected Rs 40 trillion in private investment for the National Infrastructure Pipeline (NIP) in the next two fiscal years, Rs 8 trillion will be in BGs. “It is time to go for Revolving BGs or Insurance Surety Bonds,” the CII suggested.
There is no consistency in tax rates or holding periods for different types of instruments falling within the same asset class and the Budget needs to provide a well-defined structure for taxation of capital gains, said CII.
The FICCI gave examples of China, Taiwan, Vietnam and Malaysia that have become hubs of solar manufacturing to seek 15% tax relief to companies investing in green technologies on or after a specified date and full deduction for purchase of green technology assets to encourage replacement of obsolete technology with green technology.
The industry also sought a consumption voucher scheme to cover areas such as education and consumer durables etc. on the lines of the LTC Cash Voucher Scheme for government staff and special festive advance schemes announced last year.