Chidambaram says FBT to stay, will boot out anomalies

He also said he was relooking at the cash withdrawal tax, which had ‘‘psychologically hurt’’ people rather than ‘‘financially.’’ ‘‘We have put on our thinking cap and will find a better way,’’ he said.

Chidambaram invited industry associations like CII, FICCI and Assocham to nominate members for assisting the tax department to improve the language of the section on FBT. He said FBT is based on ‘cost to company’, which is an internationally accepted principle.

Chidambaram also said a new comprehensive Income Tax Bill will be drawn up by the next fiscal-end to clean up the complex and archaic laws. He also proposed a system through which the government could get production data and excise liabilities on a daily basis through an online system.

‘‘There are about 80,000 excise assessees who pay about 90 per cent of the excise duty. What I want is all these 80,000 asseesees to file everyday the production data and excise liability online,’’ he said. He called on companies like Infosys, Wipro and TCS to device a system to do so at the government’s cost.

Chidambaram said the Special Purpose Vehicle, announced in Budget 2005, for raising up to Rs 10,000 crore for funding infrastructure projects will be set up in 4-6 weeks.

He said most of the projects, which would have to import equipment, could use up $2-3 billion in foreign exchange. The banks would provide short-term loans up to five years, while the SPV would lend for long-term.

The Budget also made a provision of Rs 1,500 crore for “viability gap” funding for infrastructure projects. That mechanism would be used in conjunction with the funding mechanism through the SPV.

MUL, Balco sale; BHEL, OIL, PGCIL offer in the offing

NEW DELHI: At least 5 PSUs including Maruti, Balco, BHEL, OIL India and Power Grid Corp will be taken up for disinvestment in the next few months as part of efforts to raise Rs 5,000-7,000 crore in 2005-06. “The government is thinking of residual stake sale in case of Maruti and Balco in the next few months,” a finance ministry official said on Friday. Initial public offers of OIL India and Power Grid Corp also being explored for the next fiscal, he said. Initial public offers of OIL India and Powergrid Corporation of India Ltd is also being explored for ther next fiscal, he said. The government also intends to offload 5 per cent stake in BHEL. —PTI