Fringe benefits tax likely to get relook

The government may revisit some aspects of the fringe benefits tax but was non-committal on the banking cash withdrawal tax in Budget 2005-06 on which critical comments have come from political parties and other quarters.

“These are our proposals and suggestions, which are broadly accepted. We will go into them one by one. But if you point out that there are some things to be cleaned, we will certainly look into it,” Finance Minister P. Chidambaram said in an interaction with economists. He specifically referred to sales promotion including publicity that had been included in the FBT tax, and said, “we will find out why it is there, what is the rationale.” Chidambaram declined to make any firm commitment saying Parliament was in session.’

The finance Minister, at the post budget briefing on Monday, had given some indications he was open to suggestions for a relook at the banking cash transaction tax, though he maintained it was not a revenue-generating measure. —PTI