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PHDCCI for moderate tax rates

By Our Staff Reporter

NEW DELHI, JULY 3. Stressing the need to make Delhi a world-class destination for business and tourists alike, the PHD Chamber of Commerce and Industry (PHDCCI) has called for focussing on infrastructure development, systematic planning and sound taxation policy to attract business and investment to the Capital.

In a pre-budget memorandum submitted to the Delhi Government, the PHDCCI president, Ravi Wig, said initiative was required to bring Delhi at par with international cities. Raising the issue of property tax, Mr. Wig said while introducing Unit Area Method (UAM), higher revenue generation should not be the prime consideration. This method should ensure equality among all classes of taxpayers and remove discretion on the part of the assessor. He said the new system introduced from April 1, 2004, emerges as progressive, simpler and transparent.

Mr. Wig said reasonable rates should be adopted as presently the base unit area values are on the higher side. More so a cap should be imposed under UAM on the tax payable. This would limit the burden and hardships of the assesses.

The Chamber pointed out that there was a need for imposition of reasonable user charges on the basis of economic cost of providing services. Fixation of user charges should ensure generation of sufficient resources for maintenance of civic facilities. It said that reduction in the rate of entertainment tax from 60 per cent to 30 per cent in the last budget led to around 12 percent increase in revenue. With the coming up of many multiplexes in Delhi, in view of their incurring high development and operational cost, the Government should consider providing "industry status'' and tax relief to them. The memorandum said the State might consider giving them 100 per cent exemption from entertainment tax for 5 years along with a facility of soft loans from state level financial institutions.

The Government should encourage public-private partnership in the areas of solid waste management, infrastructure development and maintenances in industrial and commercial areas as well as in the parking areas throughout the city. The focus of the Government should be on developing Delhi as a centre of excellence in the areas of service, trade and commerce.

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