Mumbai: Seeking to rein in both planned and non-planned expenditure, city-based industry body Indian Merchants Chamber (IMC) on Sunday said the upcoming Budget should be focused on improving the 'ease of doing business'.
"Both planned and non-planned expenditure has to be controlled. Budget should be towards growth 'ease to do business," IMC president Prabodh Thakker said.
Quality of expenditure and fiscal deficit must improve, because the revenue generated this year is below the target, he said.
In its pre-budget memorandum to the Finance Ministry, the chamber said that the rate of taxation on royalty and fees for technical services should be rolled back to 10 per cent (on a gross basis).
The extant rate of tax of 25 per cent on a gross basis is severely increasing the cost of country's businesses who undertake transactions with non-residents, particularly manufacturing entities whose costs become uncompetitive. This will further the 'Make in India' initiative, the chamber said.
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