first_imgNew Delhi: The maximum personal income tax rate in the country should move towards 25 per cent to increase disposable income, thereby boosting demand in the economy, the PHD Chamber of Commerce and Industry (PHDCCI) said Wednesday.The industry body, in a statement, said liquidity infusion, job creation and low cost export finance would be crucial at this juncture to revitalise the economy and accelerate it to a higher growth trajectory. The maximum personal income tax rate presently stands at 30 per cent. Also Read – SC declines Oil Min request to stay sharing of documentsThe government must expedite liquidity infusion through gradual reduction in CRR from the current level of 4 per cent to 2 per cent and in SLR from 19 per cent to 15 per cent, PHDCCI President Talwar said. Cash Reserve Ratio (CRR) is the portion of the deposits which banks are required to park with the RBI, whereas SLR or Statutory Liquidity Ratio is the portion of funds which banks are required to park in treasury bills and other instruments. Also Read – World suffering ‘synchronized slowdown’, says new IMF chiefWe appreciate the recent cut in repo rate by 25 bps and expect that the repo rate would be reduced by 125 bps gradually from the current level of 5.75 per cent to 4.5 per cent in the coming quarters, Talwar said. The transmission of policy rate cut by the banking sector in terms of reduced lending rates would be crucial to boost liquidity and induce demand in the country, he added. Besides, he said, creation of jobs in the economy would require structural reforms in the labour laws. The low hanging fruit at this juncture is to promote labour intensive manufacturing by enacting law for fixed term employment in all sectors and making the labour laws simpler by converting 44 labour laws into 4 labour codes, Talwar said. In a separate statement, Assocham Deputy Secretary General Col Saurabh Sanyal said labour and land reforms would go a long way in attracting new investment not only from within the country but also overseas. “Given a huge political capital at his command, Prime Minister Narendra Modi would be able to bring in these reforms with a wide political support as also goodwill from other key stakeholders. “Such reforms would send a very positive message across the world about India unleashing an investor-friendly regime, making the country the best bet among the emerging markets,” Sanyal said.last_img read more

Earlier, Eastern Province Governor M.L.A.M Hizbullah and Western Province Governor Azath Salley had also resigned from their posts. He said that the decision was taken after discussions held between the Muslim Parliamentarians in the Government. Hakeem said that the Muslim Ministers will however continue to support the Government in Parliament and ensure it has the majority. Deputy Minister for Ports and Shipping Abdullah Mahroof had also tendered his resignation.Hashim said the Muslim Ministers who resigned will give the Government one month to ensure the authorities investigate the allegations made against some Muslims Ministers over the Easter Sunday attacks.He said that while the former Ministers will continue to support the Government they would expect the Government to protect the Muslim community. The Muslim Ministers who resigned are Rauf Hakeem, Kabir Hashim, MHA Haleem and Rishad Bathiudeen.State Ministers Ali Zahir Maulana, Faizal Cassim, H.M.M. Haris and Ameer Ali also resigned. The President’s office said that they handed over their resignation letters to President Maithripala Sirisena.President Sirisena, who had appointed the two Governors, accepted the resignation letters.  (Colombo Gazette) All Muslim Ministers, including Minister Rishad Bathiudeen, resigned from their portfolios in the Government today.Addressing the media today, Minister Rauf Hakeem said that all Muslim State and Deputy Ministers had also tendered their resignations. read more