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The ministry has also
written to industry bodies to send in their proposals
for the Budget. It will hold discussions with the
industry beginning next month.
“The work has already begun (on Budget). In line with
the practice, we will have discussions with the industry
on their Budget wish-list from the first week of
December,” a government official said.
The meetings with industry assume importance this year
since the Budget may mark unwinding of the fiscal
stimulus if the economy returns to a high growth path by
then. The government has stated it will not roll back
the stimulus until a strong recovery is in place.
Despite the government working towards the introduction
of a uniform goods and services tax (GST) from April 1,
2010, the industry has been asked to give its
suggestions on taxes, including indirect taxes, such as
service tax and central excise, which will be subsumed
into GST once it is implemented.
In case the GST deadline is met, the changes in service
tax and central excise, if any, will hold no
significance. However, the implementation of GST might
be delayed, as admitted by finance minister Pranab
Mukherjee himself. In that case, the government may
rationalise the taxes which were reduced in the last one
year to provide a fiscal stimulus to the economy at the
time of a slowdown.
“We are open to taking their views on all kinds of
indirect taxes,” the official added.
A top official in another ministry said: “We have asked
the industry to give their wish-list for the Budget. We
will compile the proposals and send these to the finance
ministry soon.”
In January, the finance minister is also likely to start
pre-Budget consultations with different sections of the
industry, economists and bankers. Revenue Secretary P V
Bhide, whose tenure is coming to an end in January, may
continue in the finance ministry till the Budget
exercise is over, sources said.
This time, the Budget may be tabled in Parliament on
February 26 — the last working day of the month.
Source :
The
Business Standard,
India,
dated
25/11/2009
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