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Journalism of Courage
The Federation of Indian Chambers of Commerce and Industry (Ficci) has made a call for lower corporate tax rates, disarming the Fringe Benefit Tax (FBT) and banking cash transaction taxes and changes in new tax slabs introduced in Budget this year.
In a memorandum that lists proposals for Budget 2005-06, the association has also demanded changes in the weighted deduction going to pharma companies involved in emerging sectors such as clinical drug trials and bio-studies outside the in-house research facilities.
‘‘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.
