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FICCI, CII support govt on 2% surcharge on I-T

The Federation of Indian Chambers of Commerce and Industry (Ficci) has supported the government's decision to levy a 2 per cent surcharge on income tax for the assessment year 2001-2002 for mobilising resources for relief and rehabilitation in Gujarat.

The same sentiment was echoed by the Confederation of Indian Industry (CII).

CII president Arun Bharat Ram said that this was the only way the government could, immediately, garner resources to mitigate the losses suffered in Gujarat. He further added that the chamber appreciates the exigencies of the circumstances and in this hour of crisis supports the government's move.

The CII president also stated that a one per cent additional levy in December for natural disasters and calamities coupled with this additional 2 per cent would help mobilise resources and in the reconstruction of Gujarat

Ficci, however, suggested that the surcharge levied on individuals and companies must be temporary in nature and be withdrawn immediately on completion of the task.

FICCI reiterated that the re-building of Gujarat would call for huge resources and the government's efforts will have to be supplemented with funds from the private sector, with loans from the housing finance development banks for house re-construction, from commercial banks for setting up of businesses, from financial institutions and the infrastructure development and financing corporation for rebuilding infrastructure facilities in the state.

The chamber also underlined the need for involving multilateral financial organisations like the World Bank and other international aid agencies.

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