The maximum personal income tax rate in the country should move towards 25 per cent to increase disposable income, thereby boosting demand in the economy, the PHD Chamber of Commerce and Industry (PHDCCI) said Wednesday.
The industry body, in a statement, said liquidity infusion, job creation and low cost export finance NSE -0.76 % would be crucial at this juncture to revitalise the economy and accelerate it to a higher growth trajectory.
The maximum personal income tax rate presently stands at 30 per cent.
The government must expedite liquidity infusion through gradual reduction in CRR from the current level of 4 per cent to 2 per cent and in SLR from 19 per cent to 15 per cent, PHDCCI President Talwar said.
Cash Reserve Ratio (CRR) is the portion of the deposits which banks are required to park with the RBI, whereas SLR or Statutory Liquidity Ratio is the portion of funds which banks are required to park in treasury bills and other instruments.
We appreciate the recent cut in repo rate by 25 bps and expect that the repo rate would be reduced by 125 bps gradually from the current level of 5.75 per cent to 4.5 per cent in the coming quarters, Talwar said.
Source: Economic Times
