Finance Minister Nirmala Sitharaman on Tuesday held pre-Budget consultation with the representatives of industry, services and trade groups in connection with the forthcoming General Budget 2020-21.
The main areas of discussion during the meeting included regulatory environment impacting private investment, measures for promotion of exports amidst rising protectionist tendencies, Industrial production, logistics, Media & Entertainment Services & IT & IT enabled services among others.
Ajay Sahai, President Federation of Indian Exports (FIEO) said, “we need to bring ‘Double Tax Deduction Scheme for Internationalization of MSMEs’ to allow MSMEs to deduct against their taxable income, twice the qualifying expenses incurred for approved overseas activities including market preparation, market exploration, market promotion, and market presence.
A ceiling of $2,00,000 may be put under the Scheme so that the investment and tax deduction are limited, he said. He also called for an Exports Development Fund.
The meeting was attended by Anurag Thakur, Minister of State for Finance and Corporate Affairs, Finance Secretary, Rajeev Kumar, Atanu Chakraborty, Secretary, Economic Affairs, Shri Ajay Bhushan Pandey, Revenue Secretary, Yogendra Tripathi, Secretary, Ministry of Tourism, Guruprasad Mohapatra, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Anup Wadhanwan, Secretary Department of Commerce and CBDT, CBIC chairmen including CEA K.V. Subramanian.
To give a boost to the Indian economy, the representatives of Industry, Services, and Trade Sectors submitted several suggestions concerning Ease of doing business for going concern by reduction of compliance burden, reduction of tax litigation, allowing self-certification in low-risk industry, decriminalization of Tax and Company Laws, reduction of cost of equity capital.
They also called for simplification and rationalization with regards to duties and labor laws, adoption of international standards of Alternative Dispute Resolution, Export Development funds for helping MSME exporters, ease of investment flow into the manufacturing sector.
Representatives of Industry, Services and trade Sectors included Vikram Kirloskar, Sandip Somany, President, Federation of Indian Chambers of Commerce and Industry, Deepak Sood, Secretary General ASSOCHAM; Ajay Sahai, DG & CEO, FIEO among others.