ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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FICCI-And Now Lower Company Taxation

of Commerce and Industry (FICCI) can read the political winds as well as anybody. Having wrested, in the budget for this year, a further cut in personal income-tax rates and a variety of excise duty concessions, it has begun to prepare the ground for a lowering of income-tax on Companies in the next budget. The main event at the so-called national conference of tax executives, which is to be inaugurated by the finance minister on this Friday, will evidently be the airing of the FICCI's paper demanding a wide range of tax reliefs. In particular, the paper calls for a reduction of the rate of tax on companies to help revive the capital market and promote greater investment and growth. It also points to other mouthwatering possibilities for the private corporate sector, such as exemption of retained earnings of companies from tax, withdrawal of the surcharge and surtax on company profits, extension of the 25 per cent investment allowance to all industries with a higher rate of allowance for so-called 'priority industries' and a revival of the system of tax credit certificates.

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