Top economists on Wednesday suggested a slew of measures to propel growth: Deregulate diesel prices, cut subsidies, raise taxes and push tax reforms.In a pre-Budget meeting with finance minister Pranab Mukherjee, they highlighted the need to contain the soaring fiscal deficit and clear stuck-up mega projects in the power, mining and steel sectors.The economists urged the government to improve tax administration, raise the tax-to-GDP ratio and abolish the securities transaction tax (STT) for share-market transactions. The STT currently stands at 0.017% for derivatives and 0.125% for non-delivery-based trades. Withdrawal of STT is expected to boost volumes and attract retail investors to the stock market. France recently decided to impose this transaction tax, inviting criticism from within the country as trading volumes are expected to shift to other countries.
Source: Financial Express
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