New Delhi, Dec. 10 (PTI): Industry association Ficci today demanded speedy tax refunds and said the government should not impose an inheritance tax in the upcoming budget.
“Tax payers are indeed concerned about the substantial refunds pending at the tax office on account of both direct and indirect taxes. All pending refunds need to be granted forthwith, even when a case is chosen for scrutiny assessment,” Ficci president R.V. Kanoria said.
In its pre-budget recommendations to revenue secretary Sumit Bose, Ficci demanded improving the dispute resolution mechanism and the immediate implementation of goods and services tax (GST).
“To impose a tax which could potentially require a promoter to dilute his shareholding in a company merely to pay incidence of inheritance tax is likely to prove to be completely counter-productive. We strongly oppose any imposition of the inheritance tax,” Kanoria said.
In order to deal with the issue of accumulation of wealth, finance minister P. Chidambaram had said the time has come for a debate on inheritance tax.
“Sometimes I doubt whether we have taken moderation (in tax rates) too far. Have we paid little attention to accumulation of wealth in few hands? I am still hesitant to talk about inter-generational equity and therefore inheritance tax. I think these are the questions we should debate,” he had said.
Ficci also suggested making public the final report of the Parthasarathy Shome Committee on the General Anti-Avoidance Rules and retrospective amendments.
It also sought clarity on the newly implemented service tax regime, abolition of tax levied on foreign dividends and continuation of basic customs duties at existing levels till GST is introduced.