Nirmala Sitharaman, Union Finance Minister. Case. | Photo credit: PTI
Ahead of the annual budget presentation, a leading US India-focused strategic and trade advocacy group urged Union Finance Minister Nirmala Sitharaman to simplify and streamline the direct and indirect tax system by India, a move he said would boost global investor confidence and increase returns from foreign direct investment.
Direct taxes can take the form of income tax, capital gains tax or stock market transaction tax, while indirect taxes such as GST, customs duties or VAT are levied on all final consumers to purchase goods or services.
“Streamline corporate tax rates for foreign corporations,” the US-India Strategic and Partnership Forum (USISPF) said in its submission to the Ministry of Finance ahead of annual budget presentations on Feb. 1. He said the rate for foreign companies including banks would be reduced to bring parity and sought to streamline taxation for new manufacturing businesses.
Urging India to simplify capital gains tax reforms, the USISPF sought to harmonize the holding periods and rates of different instruments.
“Reiterate India’s commitment to the Global Tax Agreement,” he said and urged the Union Finance Minister to extend the concessional tax regime to Foreign Portfolio Investments (REITs) from investments in securities.
The USISPF also offered tax incentives to specific sectors such as renewable energy and R&D investments in the health sector.
Among the Forum’s recommendations are promoting a stable and predictable tax environment, improving the ease of doing business, streamlining the cost of doing business, and streamlining tax rates and tariffs.
On indirect taxes, the USISPF requested clarification on duty exemptions for oil and gas companies, the reduction of duty rates for X-ray machines from 10% to 7.5 % and the granting of customs duty exemptions on all items imported by specific research and development activities. units.
The USISPF urged the Minister of Finance to rescind the increase in tariffs on nutritional products in view of the importance and significance of the product and to encourage the availability of scientifically designed nutritional foods in India.
Among its recommendations on tariffs and tariffs, the processes include resolving ambiguities in the tariff law on telecommunications products, an extension of concessional tariffs to advanced biofuel projects, and strengthening the process. on the ground with regard to trade facilitation programs such as CAROTAR and Faceless Assessment.