Rajnath panel wants Govt to continue with tax holiday

The Rajnath Singh panel, appointed by the BJP to study the Kelkar Committee recommendations on direct taxes and administrative reforms, is likely to suggest that the Central Government continue with the incentives given to companies involved in infrastructure development.

The panel held a three-hour meeting at Singh’s residence today where Vijay Kelkar and his team members briefed BJP leaders on the pros and cons of their proposals.

Sources said BJP leaders feel the tax holiday granted to companies involved in infrastructure development, as in construction of roads and bridges, must continue. Since the Government doesn’t have enough funds, the private sector needs to be encouraged to pace up work in these crucial areas, they said.