Auto industry wants rationalised tax structure, IT sector wishes STPI scheme will continue

With just hours to go for the budget presentation by Finance Minister Pranab Mukherjee, the Pune Inc is expecting various tax exemptions, extension of industrial beneficiary schemes and hoping that impetus is given to tax reforms to attract more investments.

Anant Sardeshmukh, director-general, Mahratta Chamber of Commerce Industries and Agriculture (MCCIA), said that concessions should be given such as investment allowance that would help industries to invest. “Apart from that, fringe benefit tax should be abolished considering the present economical scenario. On personal taxation front, standard reduction for salaried employees should be made and tax-free saving income restored. Another important thing that the industry expects is rationalisation and simplification of various government processes,” he said.

The automobile industry that is reeling under global economic slowdown wants stimulus package to be continued. Income Tax relief, special funds for auto loans and rationalisation of taxes and levies top the list.

P Balendran, vice-president, General Motors India said the auto sector expects increased investments for infrastructural development through effective monitoring mechanism.

“We expect reduction in excise duty of cars and MUVs from 20 per cent to CENVAT level. Removal of additional cess of Rs 15,000 and Rs 20,000 from cars attracting 20 per cent excise duty, incentives for new and existing automotive plants for expansion/ diversification based on additional investments/ FDIs are also expected,” he said.

Another sector hit by global economic slowdown and protectionist policies of the new US administration — the IT/ITES industry—¿ has high hopes from the budget. Top most on its wish list is extension of tax holidays under the Software Technology Parks of India (STPI) scheme beyond May 2010. “STPI scheme should be continued for five more years, particularly in the current global economical slowdown. Various duties on software products ought to be removed. Service and sales tax on domestic software products should be abolished,” said Deepak Shikarpur, chairman, Computer Society of India.

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