Making presentations on the private sector´s recommendations to Finance Minister Surendra Pandey, FNCCI officials Tuesday also appealed for a waiver on income tax for exports and cottage industries, and reduction of capital gains tax (CGT) to 10 percent from the present 15 percent.
"These measures are very necessary for promoting smaller industries and giving investors a boost," Pradeep Man Vaidya, chairperson of FNCCI´s Tax and Revenue Committee, said.
Interestingly, the apex business body also asked the government to raise the tax exemption ceiling for an individual to Rs 160,000, and for householders to Rs 200,000.
Citing rigid labor laws as a big hurdle in industrial operations, the private sector demanded that the government grant them flexibility over lay-offs and incorporate a ´no-work, no-pay´ provision in the new budget.
"The new budget should focus on investment promotion and incorporate measures that do away with existing problems such as political instability, labor rigidity and policy ambiguity, among others," Vaidya said.
FNCCI President Kush Kumar Joshi urged the government to either ban bandas and chakka jams or make provisions in the next budget for compensating industry for the losses they suffer from such closures.
He also asked the government not to enforce a new tax policy until the new constitution comes into force.
FNCCI in the main asked the government not to impose a property tax, as announced by the Maoist-led government, through the present budgetary program. But it suggested the government continue youth self-employment programs, saying that their effective implementation could help in creating employment, managing conflict and supporting the peace process.
Joshi tagged the power crisis the most critical problem the industrial sector is facing. And pointing out that there is no indication of this problem being solved soon, he requested the government to pledge concessions to promote solar and wind energy, among others.
FNCCI has also demanded that the government formulate an Employers´ Act in order to protect the rights and interests of investors.
While making suggestions on numerous taxation and infrastructure-related issues, the apex business body also demanded the government prioritize the industrial sector and devise policies accordingly for supporting its development.
The paper presented Tuesday suggests to the government to declare hydropower, limestone and cement, biodiversity, agro-industry complexes, animal husbandry, mountaineering and forest-based and herbs-processing industries, among others, as priority sectors.
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