The industry chambers in a pre-budget consultation meeting with Finance Minister Arun Jaitley also made a case for the continuation of public expenditure to boost growth.

Jaitley endorsed the idea that the business and trade sector needed to "increase spending specially in the infrastructure sector".

Industry bodies such as CII and Ficci suggested that the withdrawal of incentives should be in tandem with the reduction in corporate tax rate besides removal or reduction of minimum alternate tax (MAT).

The chambers also suggested raising income tax exemption limit to Rs 5 lakh and a levy of nominal rate of interest on delayed payments.

Jaitley said the Indian economy has achieved robust growth rate despite global volatility and uncertainty, mainly because of steps taken by the government.

The industry further demanded that MAT be withdrawn in a calibrated manner and tax exemptions and allowances be reduced while tax rate may be rationalised.

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