10 Feb, EOD - Indian

SENSEX 77311.8 (-0.70)

Nifty 50 23381.6 (-0.76)

Nifty Bank 49981 (-0.35)

Nifty IT 42596.55 (-0.76)

Nifty Midcap 100 52471.05 (-2.12)

Nifty Next 50 62390.3 (-1.83)

Nifty Pharma 21665.65 (-1.86)

Nifty Smallcap 100 16648.7 (-2.11)

10 Feb, EOD - Global

NIKKEI 225 38801.17 (0.04)

HANG SENG 21521.98 (1.84)

S&P 6073.75 (0.71)


Pre Budget WishList News

You are Here : Home > News > Pre Budget WishList News >

(19 Jul 2024, 14:31)

FICCI: Govt should continue to lay thrust on public capex on physical, social and digital infrastructure


1) Maintain thrust on investments: The government should continue to lay thrust on public capex on physical, social and digital infrastructure in the upcoming Union Budget. The capital expenditure outlay for FY25 should be increased by 25 percent over RE for FY24 to Rs 11.8 lakh crore.  

2) Prioritise innovation and research and development:

Operationalise the Rs. 1 lakh crore corpus announced in Interim Union Budget for research and innovation in sunrise sectors by ensuring that TRL 2-4 level research is taken up to innovations with TRL 8-9 implementation levels, so that ideas are developed into cash-flow.

Review the current Patent Box regime to reap the true benefits of this wholesome incentive -

The condition of joint patentee also being ‘true and first inventor’ be amended to enable the company funding the R&D for development of the patent and owning it as first assignee to claim the benefit of 10% tax rate.

It should be clarified that royalty received from overseas for a patent which is registered in India as also in a foreign country also qualifies for concessional rate of tax.

Announce setting up of innovation clusters co-locating private sector, academia, investors, start-ups and government funded R&D institutions for critical areas (renewable energy, water, smart mobility, new materials, life sciences).

Shift focus of publicly funded research in autonomous government laboratories to publicly funded research in higher education institutions as this will build a supply of advanced research talent needed by companies.

 

3) Continue simplification of the tax regime:

Simplify TDS provisions - To further enhance the ease of doing business, the government should consider laying down a roadmap for rationalization of TDS rate structure. It is suggested that there be only three rate structures for TDS payments – TDS on salary at slab rate, TDS on lotteries/online games etc. at maximum marginal rate and two standard rates for TDS for different categories. Simplification of the TDS rate structure will considerably ease the compliance burden on the taxpayers and avoid litigation due to characterization disputes.

Simplify capital gains tax regime in terms of two or three broad buckets of different types of assets, holding period for such assets to turn long term, indexation benefit eligibility, LTCG tax rate and STCG tax rate for such assets without distinction between residents and non-residents. Indicative broad buckets could be (a) Equity instruments (b) Debt instruments and (c) Other assets.

Introduce a new independent Dispute Resolution Forum for effective and time bound dispute resolution.

Initiate GST 2.0 reforms, with fewer GST tax slabs (max 3), inclusion of hitherto excluded sectors, and revamp of GST law to have minimal friction in achieving pass through of all input tax credits in the entire value chain.

Rationalize custom duty rates where duty inversions exist for products such as textiles, aluminium, chemicals, etc.

4) Enable MSMEs in meeting their requirement for liquidity and finance:

Revise the qualifying turnover criterion for mandatory registration of companies on TReDS platform to more than Rs 250 crore from Rs 500 crore currently.

Every tax invoice raised by GST registered MSME unit should reflect automatically on the respective TReDS platform where MSME unit is registered.  Such invoices to be made deemed accepted and made available for Financial Institutions to provide funds to MSMEs.

Leverage Account Aggregator framework for MSME lending by reviewing the legal and compliance issues that prevent joint and corporate accounts from the scope of AA.

5) Provide thrust to exports:

Revise rates of duty drawback, RoDTEP to make Indian exports competitive while ensuring that the revised rate structure is WTO compliant.  

Develop a blockchain based single portal for all trade related compliances (linking multiple portals from DGFT, Customs, multiple PGAs, shipping lines, logistics providers, banks, etc.)

Increase cross-border paperless trade by implementing electronics exchange of customs declarations, electronic exchange of certificate of origin, electronic certificates related to SPS, etc.

 

6) Strengthen agri-ecosystem and boost agri-productivity:

Launch an agricultural yields mission for bottom 100 districts on the lines of aspirational districts.

Launch a national program for developing farm technicians over next 5 years to provide new technologies and services to farmers such as soil testing, micro irrigation, drones, sensors, farm machinery, post-harvest technologies as well as operation and maintenance of in-village water supply system.

Create R&D network through collaboration between private sector and govt agri-research institutions to develop climate-resilient seeds and precision farming technologies.

Set up a national board for FPOs (NBFPO) to promote, upskill, provide a network for and monitor progress of FPOs; link each FPO with KVK/Agri-university/ development institutions (ICAR, IARI, etc.) for continuous technical support and guidance.

 

7) Provide acceleration to Tourism:

Grant infrastructure status to ‘tourism’ projects with capex above INR 50 Cr.

Create a ‘Tourism Development Fund’ co-financed by the Centre and States to support creation of ancillary infrastructure in and around new destinations/remote districts.

 

8) Continue to promote sustainability:

Release National Taxonomy for Green Finance comparable and interoperable with global taxonomies, frameworks and principles.

Create pathways for green transition for all sectors.

Launch a national level vision document for circular economy that provides a framework with clear goals, strategies and initiatives that promote circular practices across different sectors.

Initiate a review of the Priority Sector Lending framework to bring within its purview climate adaptation and climate risk mitigation activities such as clean transportation (e.g. Electric Vehicles), EV charging infrastructure, sustainable water and waste management, recycling, etc.

Improve share of RE in the energy mix by strengthening Open Access and developing a ‘National Storage Framework’ for energy storage solutions (BESS, PHS etc.)

9) Addressing food inflation: To mitigate food inflation, resolute action backed with hard data is required at multiple points and among multiple stakeholders. We believe this can be done only with an efficient structure, backed by the authority of the PMO. We suggest a Food Inflation & Response Strategy Team (FIRST) to create an e-enabled, empowered coordination framework which can work with and across multiple key governmental agencies, to proactively address food inflation through logistical strategies in the short term. In the long-term learnings can be captured to form the basis of agricultural production and distribution planning for supply side management of inflation.

10) Enable affordable financing for accelerated electrification growth of last mile mobility:

Introduce SIDBI EV4ECO Scheme for Electric Three-Wheeler Passenger Carrier (L5M Auto Rickshaw) to support 10,000 vehicles.


More News

Capital Market Publishers India Pvt. Ltd

401, Swastik Chambers, Sion Trombay Road, Chembur, Mumbai - 400 071, India.

Formed in 1986, Capital Market Publishers India Pvt Ltd pioneered corporate databases and stock market magazine in India. Today Capitaline corporate database cover more than 35,000 listed and unlisted Indian companies. Latest technologies and standards are constantly being adopted to keep the database user-friendly, comprehensive and up-to-date.

Over the years the scope of the databases has enlarged to cover economy, sectors, mutual funds, commodities and news. Many innovative online and offline applications of these databases have been developed to meet various common as well as customized requirements.

While all the leading institutional investors use Capitaline databases, Capital Market magazine gives access to the databases to individual investors through Corporate Scoreboard. Besides stock market and company-related articles, the magazine’s independent and insightful coverage includes mutual funds, taxation, commodities and personal finance.

The power of the database is harnessed by our fired-up reporters to generate interesting ideas. The reader-friendly presentation of the idea, supplemented by relevant data and information, can be accessed online through Capita Telefolio and Telefolio Gold. These ideas are used by individual investors as well as institutional investors to do further research and stay ahead.

Copyright @ Capital Market Publishers India Pvt.Ltd

Designed, Developed and maintained by CMOTS Infotech (ISO 9001:2015 Certified)

Site best viewed in Internet Explorer Edge ,   Google Chrome 115.0.5790.111 + ,   Mozilla Firefox 115.0.3 + ,   Opera 30.0+, Safari 16.4.1 +