'Accord 100 pc tax holiday scheme to infra ind'

New Delhi, Aug 6: Besides demanding infrastructure status for gas pipelines, Industry chamber Assocham has proposed 100 per cent holiday benefits for infrastructure building industries for 15 years, to enable India achieve 12 per cent manufacturing growth.

In a detailed representation submitted to the Finance Minister P Chidambaram, Assocham President Anil K Agarwal urged that 100 per cent tax holiday incentives also be given to various types of activities involved in complete supply chain of food processing industries and agro-based industries for same period to make sure that food processing sector substantially rises its contribution to national GDP growth.

The chamber has also pointed out that gas pipelines are a critical infrastructure and the most safest and viable means for transportation of natural gas and therefore seeks that infrastructure status should be given to this industry.

It emphasised that it would be in the fitness of things that the tax incentives provided to other critical infrastructure sector should also be provided to this particular segment of the economy.

Citing the examples of countries like Thailand, China and Malaysia, which have provided incentives to promote infrastructure, it said infrastructure development in these countries have helped in a major way in their overall economic development.

In the Indian context, it should be realised that it is important for existing infrastructure tax incentives to continue in order to make our economy globally competitive.

Currently, the tax concession is available by way of deduction at varying percentages of income of the industrial undertakings and for varying periods, which has unnecessarily added to the complexities and confusion. It may be desirable to have a re-look at them with a view to providing some sort of uniformity, rationality and simplicity, it said.

The other sectors which should be given incentives in the form of taxation include the housing and hotel as they provide much needed employment in the country as well as helps in strengthening the foreign exchange position.

The real estate sector has urged the government that the definition of housing for the purpose of infrastructure should be reviewed. Assocham is of the view that there is a need to enlarge the definition of housing as per the recommendations given by Dr Rakesh Mohan Committee on infrastructure.

The 'infrastructure facility' should include an integrated township development involving provision of residential, educational, medical, community, commercial or institutional buildings and creation of required facilities including roads, water supply, water treatment, sanitation and sewerage systems, solid waste treatment and management systems, electrification, landscaping and afforestation and other civic services needed in an integrated township, the chamber noted.

UNI