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GST - CII suggested manifesto calls for two or three tax rates

Published: Mar 11, 2019

By TIOL News Service

NEW DELHI, MAR 11, 2019: AS soon as the poll schedule was released the CII has also released its inputs for election manifestos to be tailored by all political parties. It covers issues like Agriculture, Education, Health, Infrastructure, Manufacturing, Technology and Environment.

CII has targeted an average growth rate of 8% per annum for the next five years.

"The CII Suggested Manifesto envisages a continued high pace of reforms, enabling India to take a lead in a world of multiple transformations in the global and technology environment," said Mr Chandrajit Banerjee, Director General, CII.

The CII document calls for compressing GST rate slabs to 2 or 3 and lowering corporate income tax to 18% with no exemptions to make Indian tax rates globally competitive.

"The CII Suggested Manifesto highlights administrative, judicial and police reforms. We also recommend the highest priority on education, healthcare and infrastructure, among other sectors," added Mr Banerjee.

On electoral reforms, CII suggests devising a model for simultaneous elections of Parliament and state legislatures from 2024

The CII note advocates raising public expenditure on education to 6% of GDP. It suggests making vocational training part of the curriculum and incentivising better performance of teachers with upgraded digital school infrastructure, especially in rural schools. A key measure would be to link universities with industry and increase government funding for R&D to 1% of GDP.

On skill development, the industry body has recommended lifelong skilling modules and new delivery models based on technology.

CII has said that public expenditure on health should be increased to 3% of GDP to reduce out-of-pocket expenditure. The healthcare sector should be notified as an infrastructure sector. Reducing India's maternal and infant mortality ratios must be taken up on priority basis, said the CII press release.

To generate new livelihoods, CII in its Suggested Manifesto has called for an empowered committee of central and state labour ministers to rework labour laws. Labour-intensive manufacturing and services sectors like food processing, textiles and apparel, tourism, healthcare, etc. need special attention.

For the agriculture sector, CII has called for introducing a comprehensive National Agriculture Mission in partnership with state governments. A ranking of Ease of Doing Agriculture for states is suggested. It is important to promote efficient marketing in electronic National Agriculture Markets to ensure better farmer income, noted the CII statement.

CII suggested that implementing a Basic District Development Plan with super-specialty hospitals, multi-skill centers and other facilities in each district would help the rural economy.