Corporate tax rate in India must be brought down to the global average of 25 per cent to regain the growth momentum, Indian Chamber of Commerce said in its pre-budget suggestions.
The chamber also suggested that levies like surcharge and education cess must be removed to generate more investible surplus with the corporates.
It strongly objected to the proposed GAAR rules and said the practice of retrospective amendment of tax laws must be given a go by at this juncture.
In a meeting with Union Finance Ministry officials, the city-based chamber spoke of necessity to incentivise investment flows and suggested restoration of the earlier depreciation rate of 25 per cent and extension of additional depreciation of 20 per cent to all machinery and plants, it said in a statement.
It emphasised that agricultural infrastructure needs considerable investments and hence Section 80IA benefits must be extended to all such investments like IT infrastructure, computers, VSAT, solar panels, water harvesting facilities, storage etc.
To build infrastructure facilities, construction companies should be granted relief from MAT, the chamber suggested.
On indirect taxes, the chamber strongly emphasised on the need to introduce the GST urgently, which would help bring down cost of manufacture by avoiding cascading effect of taxes.
