Union Budget 2008 | EAC wants indirect taxes adjusted on consumer goods

Economic Advisory Council also asks Finance Minister to increase public investment, change income tax slab to stimulate the economy


New Delhi: Expecting the economy to grow at around 8.5% during next fiscal, the PM’s Economic Advisory Council suggested to Finance Minister P Chidambaram on 16 January to adjust indirect taxes on consumers goods in the budget 2008-09 to give a push to manufacturing sector.
The council also advised the Finance Minister to increase public investment and make adjustments in income tax slab to stimulate the economy.
“Our own view is the economy will grow at 8.5% next year. But, there are some areas of concern where there are weaknesses. They are known like manufacturing,” Council Chairman C Rangarajan told reporters after a Pre-Budget with Finance Minister here.
However, the council did not give suggestion on any major reduction in the tax rates.