Government should restrict corporate tax at 25% with cesses, surcharges: PHDCCI

Government should restrict corporate tax at 25% with cesses and surcharges, PHD Chamber of Commerce and Industry has said. Submitting the Budget proposals of the chamber to Finance Minister Arun Jaitley, its President Gopal Jiwarajka also demanded to increase the rebate on interest paid on housing loan by Rs 1.5 lakh from 2017-18.

"Corporate tax rate should not be more than 25% from the headline rate of 30% and 34.6% with cesses and surcharges," he said in a statement. Appreciating the incentives given on promoting cash less transaction, he suggested transactions through RTGS and NEFT should be free of transaction costs. "Time has come to increase the rebate on interest paid on housing loan from the current level of Rs 2 lakh to Rs 3.5 lakh as it would boost demand in the real estate and construction as also spur up economic sentiments with positive multipliers," he said. Further he suggested to extend support to the MSME sector as they are the backbone of the economy.

"Banks should also be allowed to provide funding for domestic mergers and acquisitions and effective transmission of the monetary policy is required so that the benefits of rate cuts are percolated towards beneficiaries," he said.