Budget 2019: India Inc seeks reduction in corporate tax, abolition of MAT

New Delhi: India Inc sought reduction in the corporate tax rate, abolition of minimum alternate tax, halving dividend distribution tax to 10% and increase in outlay for infrastructure sector in the upcoming budget with a view to arrest economic slowdown. Representatives from different industry chambers made these suggestions to the FM. Finance Minister Nirmala Sitharaman, who will present her first Budget on July 5, started pre-budget consultations with representatives of industry chambers.

According to a report in the Times of India, CII president Vikram Kirloskar suggested bringing down the dividend distribution tax to 10% from the present 20%, saying it should also be not taxed at the hands of the investor. In her opening remarks, Sitharaman said since 2014 the government has taken measures to simplify and rationalise existing rules and introduced information technology in a big way to make governance more efficient and effective.

As a result, she added, India has considerably improved its ranking to 77th position among the 190 countries and has kept 23 ranks over its rank of 100 in the Doing Business Report 2018 as per the World Bank Doing Business Report, 2019. Sitharaman also said the industry should accommodate more workforce to reap benefits of demographic dividend.

Meanwhile, Assocham President B K Goenka recommended that 100% depreciation should be allowed in the first year of investment for all new investments.

Suggesting upward revision of the income tax slabs for individuals, Ficci demanded that the highest tax rate of 30% should be applicable only for income above Rs 20 lakh.