India Inc asks finance ministry to retain tax rates at current levels

Worried over the impact of global financial turmoil on the economy, India Inc yesterday urged the Finance Ministry to retain tax rates at existing levels, but hike exemption limits to spur growth.

In a routine pre-budget meeting with finance minister Pranab Mukherjee, industry leaders also demanded that healthcare services be exempted from service tax and minimum alternate tax (MAT) be rationalised.

Further, the leaders also made out a case for granting infrastructure status to aviation, telecom, healthcare and education sectors, quick implementation of Goods and Services Tax (GST) and continuation of interest rate subvention scheme for exporters till 31 March, 2013.

ITC Ltd chairman Y C Deveshwar and HUL MD and CEO Nitin Paranjpe and representatives of industry chambers attended the meeting.

"We asked for giving infrastructure status to healthcare and education sector. We also sought speeding up of PSU disinvestment, widening tax net and implementing GST as fast as possible," CII president B Muthuraman told reporters after the meeting.

Calling for the enhancement in the income tax limit, Ficci president R V Kanoria demanded that 30 per cent tax slab apply to individuals with an annual income in excess of Rs10 lakh, as against Rs8 lakh now.