Industry leaders call for massive infrastructure investments ahead of Union Budget FY20

New Delhi: Industry leaders expect the Union Budget for 2019-20 to lower corporate taxes and spur investments for shoring up consumption levels and reversing the slowdown in economic growth.
CII Director General Chandrajit Banerjee said the corporate tax rate, which currently stands at about 35 percent for larger companies, should be reduced to 25 percent. It should be brought down to 18 percent in a phased manner with simultaneous elimination of exemptions.
Secondly, he said, dividend distribution tax should be brought down from 20 percent to 10 percent in the Budget. Thirdly, to encourage taxpayers to invest in mutual funds and shares, the gains from the sale of such instruments should be made more tax-friendly by removing the taxability on sale of long-term capital assets.
“To kick start the economy and encourage investments, the cost of equity should be reduced so that investors are encouraged to take equity risks at a time when raising the growth rate is of utmost importance,” he said.
Finance Minister Nirmala Sitharaman will present the first Budget of the second term of Prime Minister Narendra Modi led NDA government at the Centre on July 5.
FICCI president Sandip Somany has called for the simplification of Goods and Services Tax (GST), lowering of interest rates, addressing farm distress and the creation of an eco-system that promotes employment.