ASSOCHAM for raising income tax ceiling to Rs 1.5 lakh

Kochi, Feb 4 (UNI) Associated Chambers of Commerce and Industry (ASSOCHAM) President Venugopal N Dhoot today favoured the ceiling on personal taxation to be raised to 1.5 lakh in view of the increasing cost of inflation index.

Talking to newspersons here, Mr Dhoot said the Chamber had also recommended to Union Finance Minister P Chidambaram that the tax slab on annual income of Rs five lakh be reduced to 25 per cent.

The Chamber also sought the abolition of ten per cent surcharge on Corporate Tax, removal of Fringe Benefit Tax(FBT) on business promotion expenses and reduction of excise duty to 12 per cent.

It has also reiterated its demand that agricultural income be taxed.

He also stressed the need for the implementation of a Goods and Services Tax from 2010 as that will cut the multiplication of taxes on Industry .

Referring to problems faced by exporters due to the stronger rupee, Mr Dhoot said the finance ministry should come out with a special package for them in the 2008-09 budget proposals. India Inc should also be encouraged in their outboud mergers, he added.

He said while infrastructural facilities like power, were better in Southern India, more civic amenities were needed in southern states.

Stating that Industrial lockouts in Kerala were a matter of concern for the Corporates, Mr Dhoot said the State Government should curb excessive unionisation of Industrial workers.

UNI ARC KVV 1925