In its corporate wishlist for Budget 2003-04, the Bharatiya Janata Party has asked Finance Minister Jaswant Singh to retain the Sections 80IA and 80IB benefits for companies, sought a special treatment for mass consumption items through lower excise duty and has also suggested the continuation of Sections 10A and 10B benefits for exports.

The economic cell of the BJP firmed up its recommendations after a series of meetings with various industry chambers, including CII, Ficci and Assocham, during the first week of February.

The party's economic think-tank later met Singh last Saturday to present the corporate sector wishlist.

Party sources said that the economic cell had refrained from providing any suggestions on sensitive issues like minimum alternate tax and corporate tax rate in its interaction with the minister.

"These are inter-connected issues, and a particular recommendation on MAT, for example, can be taken only if several other proposals are simultaneously considered," said a source.

The sources said the party had also suggested that there should be a clear differential between the Customs duty on raw materials, intermediates and finished goods, in order that the interests of the domestic manufacturing sector was protected.

Kelkar's proposal to reduce the number of slabs in excise and Customs was, however, a step in the right direction, they said.

Party officials said under the given fiscal situation, the Centre had to give sops to encourage private participation in infrastructure development in areas like telecom and power.

They said the abolition of such incentives would leave a question mark as to who would shoulder the responsibility of infrastructure growth.

The party has also opposed the proposal for uniform rates of depreciation under the Income-Tax Act and the Companies Act.

It would be detrimental to the growth of domestic industry under the competitive environment due to globalisation, it said.

The BJP is of the opinion that phasing out benefits of depreciation as per the Company's Act would create hurdles in the way of industry becoming competitive.

In its submission to the finance minister, the party has said as far as the net revenue loss to the government is concerned, it does not make much difference whether the entitled benefits are availed by the concerned unit at one time or spread over several years.

The party's economic cell has also favoured the abolition of dividend tax as recommended by Kelkar. This would encourage small investors and give a much-needed fillip to investment, party sources said.

The think-tank has, however, opposed the elimination of long-term capital gains tax, saying the present system of treatment on such gains should continue.

Party demands

• Retain Sections 80IA and 80IB benefits for companies;
• Continue with Sections 10A and 10B benefits for exports
• Ensure duty differential between raw materials, intermediates and finished goods;
• Special excise treatment for mass consumption items;
• Abolish dividend tax, continue with long-term capital gains tax; and
• No uniform depreciation rates under Companies Act and I-T Act.