NEW DELHI : The Confederation of Indian Industry (CII) has asked for a cut in income tax to support the revival in demand, ahead of the union budget to be presented in February. economic group citing Russia’s invasion of Ukraine and China’s economic slowdown.

To encourage exports, the CII has recommended that all export products be covered under the Waiver of Duty and Tax on Export Products (RoDTEP) scheme which provides refund of input tax. On Saturday, the Center decided to eliminate export duties on iron ore and several steel products after data showed exports fell by more than 16%.

“In order to increase consumer demand, CII has recommended policies such as rationalization of excise duty and individual rates, reduction of GST rate from 28% sustainable products for consumers, and acceleration of rural infrastructure projects to facilitate job creation in rural areas, said the lobby group.

The CII has also recommended raising capital expenditure to 3.3-3.4% of GDP in FY24 from the current 2.9%. The recent union budget saw an increase in capital expenditure 7.5 trillion, up 35.4% from the previous financial year. Mint reported that the number could be reached 10 trillion supported by improved liquidity.

“The sunset date for starting production under section 115BAB of the Income Tax Act should be extended from March 31, 2024 to March 31, 2025. This will encourage more investment in the manufacturing and export sectors,” CII said.

The Budget should improve the ease of payment of taxes by promoting and ensuring speedy functioning of important dispute resolution mechanisms such as informal appeals, the Advance Pricing Agreement (APA) system, the Board for Advance Ruling (BAR) and the Dispute Resolution Scheme (DRS), he added. .

CII further recommended simplification of tax withholding, clearance, assessment and appeal procedures, which can help reduce tax litigation and encourage ease of tax payment.

“The GST High Court and the National Authority for Advance Taxation should be given priority because taxpayers are facing problems in filing appeals in the High Court, especially for denial of refunds. . Further, the GST amnesty scheme should be introduced to cover the procedural and minor issues that taxpayers initially faced due to lack of knowledge,” CII said.

As the GST Act already contains adequate penalty provisions to prevent tax evasion, the CII has recommended the repeal of the GST Act. Also, the implementation of prosecution measures should not be based on the total amount of tax payment but on the intention of tax evasion, he added.

“Government should also consider setting guidelines for rationalizing the domestic TDS rate system by having only two or three categories of payments and a ‘negative list’ ‘ small amount of payments that will not be liable to TDS,” Rajiv Memani, chairman of the tax committee, said CII.

Get Business News, Market News, Latest Events and Latest News on Live Mint. Download the Mint News app to get daily market updates.

More Little

Source link