Date:10/02/2006 URL: http://www.thehindubusinessline.com/2006/02/10/stories/2006021002391200.htm

Back CEOs see 7.7% GDP growth

Our Bureau

New Delhi , Feb. 9

EIGHTY-NINE per cent of the CEOs surveyed by industry chamber CII, in a snap-poll on expectations from Budget 2006- 2007, said that the rate of growth of GDP in the current fiscal would be at least 7.7 per cent, marginally lower than Central Statistical Organisation's estimates of 8.1 per cent.

Around 67 per cent of the respondents said they expected the surcharge on income tax, which was raised to 10 per cent, to remain unchanged in the coming Budget.

Regarding Fringe Benefit Tax, about 53 per cent of the respondents were of the view that the tax would to be simplified, while 28 per cent felt that it would be discontinued.

About 53 per cent of the CEOs felt that wealth tax would be eliminated because of the administrative costs of collection involved, while the rest felt that it would be retained. Around 83 per cent of the CEOs felt that the time bound roadmap for implementation of fully integrated Goods and Services Tax (GST) would be announced in the Budget.

In order to achieve sustainable high growth, around 70 per cent of the CEOs felt that Fiscal Responsibility and Budgetary Management (FRBM) was a necessity.

The poll was conducted at a meeting of the National Council of the Confederation of Indian Industry (CII) in Mumbai on Wednesday. The council comprises captains of Indian industry.