Don’t change tax rates: India Inc to FM

Reeling under the impact of global slowdown and a high interest rate regime, India Inc on Friday demanded that tax rates be retained at existing levels even as FM Pranab Mukherjee expressed concerns about challenges facing the economy.

In their customary pre-Budget meeting with Mukherjee, industry leaders also demanded that healthcare services be kept outside service tax ambit, and privatize coal mines. "There are various challenges before us, including keeping inflation and fiscal and revenue deficit to manageable levels... which we all have to address collectively," Mukherjee said in his address to the industry leaders.

At the meeting, business leaders suggested that service tax base may be widened with a negative list, besides exempting infrastructure companies and SEZ units from MAT.