Indian Industry Groups Ask For Corporate Tax Cuts

by Mary Swire, Tax-News.com, Hong Kong

10 January 2002

Indian captains of industry met with Finance Minister Yashwant Sinha earlier this week to plead for corporate tax reductions, reforms, and increased infrastructure spending in order to boost the country's slowing economy.

Present at the pre-budget meeting were representatives from the Confederation of Indian Industries (CII), and the AICCI and ASSOCHAM Chambers of Commerce. The Indian Inc group was also represented at the meetings.

CII President Snajiv Goenka told reporters after the three and a half hour meeting with the Finance Minister that he had put in a pitch for lower tax and excise duties, and had asked Mr Sinha to reintroduce the 25% investment allowance.

FICCI President RS Lodha revealed that he had demanded a cut in commodity taxes, and underlined the urgent need for reforms in the areas of power, interest, taxes, infrastructure, labour, and production costs, which he believes are making Indian industry uncompetitive.

Meanwhile, the Indian Finance Minister reiterated the government's commitment to lowering customs tariffs to 20% over the coming three years, and to continuing to rationalise and simplify tax rates. However, he made no firm commitments on the points raised by the industry capatains.

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