ASSOCHAM WANTS 10% SURCHARGE ON CORPORATE TAX TO GO

The Associated Chambers of Commerce and Industry of India (Assocham) has recommended a host of proposals for the consideration of the Finance Minister for Union Budget of 2008-09, which included abolition of 10 per cent surcharge on corporate tax, removal of FBT on business promotion expenses, reduction of excise duty to 12 per cent and bringing agriculture into tax net. Addressing a press meet here, the Assocham President, Mr Venugopal N. Dhoot, said that the apex industrial body has also sought hike in ceiling of personal taxation to the extent of Rs 1.5 lakh, saying that the rise in income tax ceiling has become necessary in view of increasing cost of inflation index. The chamber is of the view that FBT should go as some expenses are necessary to promote businesses. Mr Dhoot, who was here in connection with the 150th anniversary celebrations of the Cochin Chamber of Commerce and Industry, said it was time agriculture sector income be subjectto income tax. On corporate tax, he said the slab should be allowed to be fixed at 30 per cent with surcharge waived off, as with surcharge the corporate tax element exceeds even 35 per cent. The Assocham chief also stressed the need for execution of goods and services tax from 2010 as it will cut multiplication of taxes on industry and make processes for tax compliance much easier and also amount to higher taxation to the Government. On rupee appreciation, Mr Dhoot was of the view that the Finance Ministry should come out with special package for exporters in consultation with the Ministry of Commerce and Industry - www.hindubusinessline.com