Pre-budget consultations: Industry for tax cuts, more reforms to push investment

  1. Finance Minister has held pre-budget discussions with the industry heads.The industry has suggested various reforms and tax cuts to push investment and growth of the economy.
  2. The various reforms suggested are (a)reduction in direct tax rate to a maximum of 18% (b)reducing the dividend distribution tax and (c)reform of land and labour laws.
  3. Industry heads has also said that after dismantling of Foreign Investment Promotion Board(FIPB),FDI proposals are dealt by the concerned sectoral ministry.This is causing significant delays in the approval process.
  4. Therefore,they have suggested that a country-specific desk to be set up for major foreign direct investment (FDI) source countries.
  5. Further,agriculture experts in their pre-Budget consultation with the Finance Minister has suggested that the government should take steps to boost investment in farm sector and enhance market access to farmers.
  6. Representatives of the agricultural sector has also suggested that solar energy may be treated as third crop to augment income of farmers, besides resolving GST issues related to farmers producers organisations,incentives for agro processing units in the border districts and enhancing investments in R&D.

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