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Journalism of Courage
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.
Kelkar, according to sources, told the panel that if these incentives are continued, it will not be possible for the Government to abolish dividend tax. ‘‘Both can not be implemented simultaneously,’’ he said. The BJP panel is likely to submit a report to party chief Venkaiah Naidu by January 18.
