Budget 2019: Assocham seeks incentives for electric vehicles, abolition of MAT, cut in corporate tax rate

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New Delhi | Published: May 31, 2019 5:01:20 AM

Among the prominent points made included abolishing minimum alternate tax (MAT), reduction in corporate tax rate and tax incentives for electrical vehicles.

assocham, electronic vehicls, automobile sector, automobile industryAssocham suggested that the government should give additional tax incentives to the electrical vehicles sector

A group of office bearers of industry body Assocham met revenue secretary Ajay Bhushan Pandey on Thursday to discuss issues for the upcoming budget.

Among the prominent points made included abolishing minimum alternate tax (MAT), reduction in corporate tax rate and tax incentives for electrical vehicles.

Further, Assocham suggested that the government should give additional tax incentives to the electrical vehicles sector, by giving weighted deduction on the capital expenditure, weighted deduction on research and development (R&D) expenditure and leveraging SEZs by extending the sunset period beyond April 2020.

Additionally, the contingent said that the country requires massive investment in the R&D sector, which will not only boost indigenous capabilities but also give massive employment opportunities as well.

Also read: Assocham hails BJP poll victory

In this direction, the 150% deduction under Section 35(2AB) should be extended beyond FY 20-21 by at least five years, it said.

“SEZs should be given a fresh lease of life by extending the sunset period beyond April 2020. Reinstating the fiscal benefits would definitely boost non-resident investments in the manufacturing sector, providing a booster shot to the flagship ‘Make in India’ campaign,” Rakesh Nangia, co-chairman, Assocham and managing partner, Nangia Advisors (Andersen Global), said.

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