RBI on Wednesday cut repo rate by 35 basis points (bps) in its third bi-monthly policy review of the financial year. It was fourth rate cut by the central bank in a row.
In a tweet the CII quoted the finance minister stating, “We are looking at financial sector woes & will address them. With all the inputs we have received, we will take these forward in the next few weeks.”
India’s economy grew slower than expected to a 20-quarter low in the January-March period, dragging overall growth to a five-year low in FY19. The economy grew 5.8% in the fourth quarter of FY19 against 6.6% in the preceding one and 8.1% in the year earlier.
The finance minister and her team are already meeting representatives of various sectors. She has met representatives of public and private banks, MSME sector and automobile so far. She will be meeting representatives of capital market on Friday and real estate on Sunday.
In a statement the CII said that the finance minister informed the members that she will be travelling around the country, including to Tier 2 cities, to first-hand hear and understand the tax harassment issues faced by corporates.
“In addition, a technology driven platform will be set up wherein cases of harassment can be uploaded, either with, or without disclosing identity,” said the CII statement quoting Sitharaman.
In her address, Sitharaman also noted that the government intent is to reduce the corporate taxes. She further said that Direct Tax Committee report will come out on August 15 and that the government will immediately will look at the recommendations.
On the matter of CSR, the CII statement quoted Sitharaman as stating that she would review the provision on criminal penal provisions.
“CSR notices with retrospective effect “were unacceptable” and she will put a stop to these notices,” the CII statement quoted the finance minister.
Sitharaman said that the government is also working on infra spending which will have a bearing on core sectors. Affordable Housing& and Housing for All is an important way to boost these sectors, she observed.
The finance minister reassured the industry leaders that at no point, and on no score government wants to make it difficult for the industry.
Industry chamber CII President-designate Uday Kotak said that the finance minister’s engagement with industry goes a long way in reassuring business that the economy is your top priority, along with building trust with industry.