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India will only be able to deal with China when the government reduces the tax burden. Why is this requirement raised before the budget?

Sagar Patel

By Sagar Patel

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The government should reduce the tax burden, such a demand is being made

‘China has considerably increased its capacity. It is bringing many products to India at very cheap prices. There is a lot of dumping from China. In such a situation, we have requested the government to review the fiscal structure of the country, so that capacity can be increased domestically. The country’s industrial leader raised it with the Minister of Finance. Just ahead of the budget, the demand to reduce the indirect tax burden in the country has intensified. After all, what is all this business about?

On Tuesday, Finance Minister Nirmala Sitharaman met with different industry representatives, which lasted for about 2 hours. There has been a tradition in the country of the Finance Minister holding such conversations with different sectors and organizations before the budget to understand their needs.

The government should reduce the tax burden

Ajay Sardana, head of Reliance Industries’ petrochemical business, was also present during the meeting. He told the Finance Minister that there is a need to review the tax rate on petrochemical industry-related items imported from China. He said China has created a lot of capacity. It is bringing many products to India at very cheap prices and a lot of dumping is taking place. In such a situation, he has requested to review the tariff system so that national capacity can be increased.

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Exporters said this problem.

Similarly, Ashwani Kumar, president of FIEO, the country’s largest exporters’ organisation, has submitted a demand to the Finance Minister to extend the Interest Equalization Scheme for the next five years. Currently, this scheme is valid only until June 30, 2024. He said that in the last two years, the Reserve Bank has increased the repo rate from 4.4 percent to 6.5 percent. Therefore, discount rates for manufacturers in the MSME sector can be reset to between three and five per cent.

Ashwini Kumar also asked the government to set up a local shipping service to reduce dependence on foreign logistics and save foreign exchange. Not only this, during the meeting, Shree Cement Chairman HM Bangar said that the government should spend more on capital expenditure so that the cement industry benefits.

Meanwhile, Ashish Aggarwal, vice-president and head of public policy at software industry organization NASSCOM, said we expect the transferable securities fixing system to become easier. Right now, the IT industry is not able to leverage it properly.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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