Ficci calls for tax reforms

‘‘It is imperative that R&D expenses incurred anywhere — in the country or outside — should be eligible for deduction, permanently,’’ Ficci said.

It has pointed out difficulties in scrutiny of transfer pricing and misuse of provisions to track expenses in this context.

On the banking transaction tax, Ficci has said it is not pliable to checks and balances, and therefore, has only been implemented in economies under severe duress. ‘‘This anti-tax avoidance measure will not serve the intended objectives,’’ it said.

Ficci also said all industrial undertakings should be granted deductions on profits for 10 consecutive years during the first 15 years of their operations.

‘‘China and Thailand are offering a wide range of incentives and duty benefits to encourage investments, supported by infrastructure, fast clearance etc.,’’ the association has pointed out.