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Assocham calls for bolder revenue generation steps
The Associated Chambers of Commerce and Industry of India (Assocham) has made a strong plea for retaining the direct tax rates at the existing level and not to introduce any higher slab or surcharge for the ‘super rich’. Any such move will not only give a setback to savings and investments but also delay the process of industrial revival, adversely affecting revenue collections. While appreciating the need for mobilising more resources in view of the shortfall in direct and indirect tax collection in 1997-98 and the imperative need to step up capital and public expenditure, chamber President L Lakshman said that a better way would be to come out with bold and innovative schemes. He suggested opening of insurance sector, using part of pension and provident funds for infrastructure development, tapping NRI investment and privatisation of PSUs. Also, it is necessary to prune non plan and administrative expenditure and phase out non-merit subsidies. Lakshman urged the finance minister to come out with special economic package for domestic and foreign investors to boost the demand of industrial goods which hold the key to economic recovery. The package should focus on housing and construction industry which provide large employment opportunities and also generate demand for basic goods.