Thursday, July 2, 2009

Fw: budget piece ?

 
----- Original Message -----
Sent: Thursday, July 02, 2009 4:57 PM
Subject: Fw: budget piece ?

V.S. Sitaram, Chief Operating Officer, Consumer Care, Dabur India
 
----- Original Message -----
From: Sitaram VS
Sent: Wednesday, July 01, 2009 10:00 AM
Subject: RE: budget piece ?

Dear Vinay

 

One of the longest pending demands of the industry is the implementation of a national-level Goods and Services Tax (GST). While the government had announced its intent to introduce GST a couple of years back, a clear roadmap for the same has still not been worked out. With the GST implementation deadline of 2010 nearing, we want the government to announce an implementation roadmap including dates, how different tariffs will merge into the unified structure, what the GST rate will be, how the government plans to make administration of GST less cumbersome than prevailing procedures. A simple, easy to administer GST could potentially be reduce the tax burden on the consuming public and thereby increase demand, while simultaneously boost revenues by increasing compliance

 

We also would like the  abolition of Fringe Benefit Tax (FBT). The last two years of FBT's implementation has not added much to the government exchequer, but has only ended up taxing genuine business expenditure. While small steps like partly rationalising FBT have already been undertaken in previous Budgets, a complete abolition of this tax would be highly beneficial.

 

The various steps announced in previous budgets to target Rural India, in particular NREGA, have resulted in a boom in rural economy, which helped India ride the global meltdown storm. We expect the government to continue this Rural India focus by improving targeting and stepping up efficiency of delivery

 

Lastly, the Government has already given indications of its intent to improve infrastructure, education and primary health. We expect the budget to provide firm shape to this intent with clear milestones and accountability in addition to stepped up funding- these will be vital for continuing India's growth momentum beyond 2010.

 

Regards

 

Sitaram

 


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