FICCI Pitches for abolition of MAT an other reforms
| Rohit – Copy Editor cum Reporter – IOP, Delhi - 29 May 2019

Indian Observer Post

NEW DELHI, May 29, 2019: A FICCI delegation led by Mr. Rajan Bharti Mittal, Past President, FICCI met Dr. Ajay Bhushan Pandey, Secretary (Revenue), Ministry of Finance in the pre-budget discussion meeting held at North Block on friday.

The delebration lead to some key recommendations to foster a growth environment for the economy. Inorder to spur domestic investment and in order to retain India’s competitiveness globally, corporate tax rate cut upto 25%  should be considered.

It was stressed that with phasing out of exemptions and deductions available under the Income Tax Act, 1961 (‘the Act’) and to avoid complexities arising under Ind-AS, there is a need to review the concept of Minimum Alternate Tax (MAT).

Also, a recommendation has been made to abolish MAT and extend a simpler Alternate Minimum Tax as is currently applicable to non-corporates to corporates, but at a reduced rate of 10% considering the reduction in corporate tax rate to 25% in line with global trend.

Recommendations for amendments required in the Act to facilitate smooth re-organisation across the economy were also made.

During the Pre-GST regime, the custom benefits allowed exemption on goods imported for mega power project from Basic Custom Duty, Additional Duty (CVD) and Additional Duty (SAD). However, due to introduction of the GST Regime, exemption stand curtailed under GST Law.

Post GST Implementation, only Basic Custom Duty is notified to be exempted resulting in increase in cost of developing the mega power projects in India. Recommendation was made to grant exemption from IGST payment on all the goods imported for mega power projects.

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