Tax reliefs sought for infrastructure projectsJune 24th, 2009 - 8:06 pm ICT by IANS
New Delhi, June 24(IANS) The Associated Chambers of Commerce and Industry of India (Assocham) Wednesday urged the government to exempt infrastructure projects from excise, value-added tax (VAT) and central sales tax (CST) to make them more cost-effective.
“On account of excise, VAT and CST, the capital costs of projects become dearer by over 20-25 percent which puts huge burden on companies commissioning infrastructure projects,” said Assocham president Sajjan Jindal.
In its pre-budget recommendation to Finance Minister Pranab Mukherjee, the chamber advocated exempting infrastructure development projects in the power, road, port, oil and gas and irrigation sectors from excise, VAT and CST till these are commissioned.
Assocham also said the 10 percent service tax imposed on such projects during the implementation phase needed to be discontinued since infrastructure is a priority area for the government.
Additionally, it called for interest exemptions for infrastructure bonds along with incentives for making such investments, as it was given in the case of India Development Bonds.
The chamber has also suggested that excise duty on construction equipment be reduced from eight percent to four percent.
It has sought extension of a 10-year tax holiday for cold chain establishments from start of the year.
- Some positives in budget, says India Inc; displeased with taxes - Mar 16, 2012
- $2 bn aerospace, defence exports by India in 2011-12: Assocham - Jan 27, 2012
- Budget allows airlines to access foreign funds (Second Lead) - Mar 16, 2012
- Realty industry has little to cheer from budget (Comment) - Mar 18, 2012
- Raise depreciation rate to boost investment: CII - Feb 26, 2012
- Gains and losses from Budget 2012-13 - Mar 16, 2012
- Mukherjee to present Budget 2011 with focus on infrastructure, tax liability - Feb 27, 2011
- Banks pitch for tax free infra bonds - Jan 19, 2012
- Centre to compensate States for their revenue losses: Pranab Mukherjee - Jul 21, 2010
- Push key reforms: Industry's budget wish list - Feb 03, 2012
- Karnataka India's second preferred investment destination: Assocham (Lead, correcting name in para one) - Jun 16, 2011
- Karnataka India's second preferred investment destination: Assocham - Jun 16, 2011
- Petrol costlier in India than in neighbours, US - Nov 29, 2011
- Lowering of sales tax on jet fuel required: Assocham - Dec 29, 2011
- Himachal increases VAT on luxury items - Jul 14, 2010
Tags: assocham, budget recommendation, chambers of commerce, chambers of commerce and industry, cold chain, construction equipment, establishments, excise duty, implementation phase, india development, industry of india, infrastructure bonds, infrastructure development projects, infrastructure projects, jindal, oil and gas, pranab mukherjee, priority area, tax holiday, tax reliefs