FM assures new direct tax code, 9 percent growth

Mahima Puri, New Delhi
The Economic Times (Delhi edition)
Finance minister Pranab Mukherjee on Monday assured industry leaders that the economy will return to a growth rate of over 9 percent in 2011-12 after expanding at 7 percent this fiscal, said an industrialist who attended the minister’s address to over 80 industry leaders here.

Mukherjee also assured business leaders at the national council meeting of the Confederation of Indian Industry (CII) that the government will come out with a new direct tax code by August 20, said another industry representative.

Industry captains, including Godrej Industries chairman Adi Godrej, Hero Honda CEO and MD Pawan Munjal, Bajaj Auto chairman Rahul Bajaj, Religare Enterprises chairman Malvinder Singh, Eicher Group chairman S Sandilya, HSBC group general manager and country head Naina Lal Kidwai, SAIL chairman S Roongta and Nasscom president Som Mittal attended the meeting, according to the source.

“The finance ministry has prepared the direct tax code, as outlined in the Budget speech last month. It will be available for consultation in the next couple of weeks,” said an industry executive, who attended the meeting but did not wish to be identified.

Mukherjee also reportedly said although the Indian economy was showing signs of recovery, the global outlook still remains a concern. The Indian economy is not isolated hence a cautious approach is required. The FM also hinted that the government was taking a relook at the proposals for a bill on land acquisition, participants at the meeting said.