Click to play videoNew Delhi: India Inc hasn't taken too kindly to the Finance Minister nudging them to lower prices.
DLF chairman KP Singh has said only market economics will dictate a price cut. He has, in fact, sought a rollback in taxes.
"We are all with the Finance Minister in the Chamber of Industries and are working together. Prices have already come down and will come down more depending on the supply and demand situation. However, the Government has to now come forward in rolling back those prices and taxes which they had imposed consequent to the inflation five years ago. So if you want those costs down, we are requesting the Government to cut excise duties, service taxes etc," he said.
Meanwhile, after India Inc gave a thumbs down to the FM's call for a price cut, industry body ASSOCHAM seems set for a u-turn. Conceding a demand slowdown, ASSOCHAM is asking for sops to facilitate price cuts.
ASSOCHAM SAYS:
- Demand-supply situation will lead to further slowdown
- Need to boost SME, housing & infrastructure sectors
- Demand one-time tax concession for industries
The trade body has requested all the ministries that funds are allocated to, to accelerate spending. It has also called for a special fund out of Foreign Exchange Reserve which is currently about $250 billion.
Led by Vice-Chairman and MD JSW Steel, Sajjan Jindal, ASSOCHAM also suggested that about $20-25 billion of the fund be made into a corpus fund and be given to various banks openly, so they can in turn lend money to various Govenment-supported infrastructure projects.
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