Increase tax on corporates: Left

The Left will ask the government to raise taxes on corporate houses, affluent institutions and individuals, target black money and mop up tax arrears as measures to raise revenue at the February 1 pre-Budget meeting between the Left parties and Finance Minister P Chidambaram.

"We will submit the government proposals for tax restructuring and expenditure cutting so that the domestic savings increase," said a top CPI leader about the Left's Budget wish-list.

The Left will also demands that rich corporate houses, which are lobbying for a reduction in the corporate tax from 35 per cent to 30 per cent, be increased further.

The government has, for its part, said it might consider the industry demand if other tax exemptions are done away with.

The Left parties' demands are not new. They have consistently been demanding that rich corporates be taxed further and big framers be brought in the tax net.

This would have a direct bearing on the government's ability to finance schemes like the Rural Employment Guarantee Scheme, said a senior leader.

The CPI's draft resolution for the 19th party congress also talks about 'increasing our domestic savings, by mobilising our rich domestic resources.'

In a section titled 'The Rosy Picture Painted by Official Sources: Its Critique,' the document says this can be done 'not so much by raising administered prices, increasing impositions on the common man, not by hiking all types of indirect taxes' but by increasing the incidence of taxation on the high income groups.

The other area, the Left will ask the government to look into, relates to the cutting of expenditure. "The government spent Rs 4,000 crore (Rs 40 billion) for the beautification of Panjim in the name of the international film festival. But there is nothing in the city to show but for bumps," a CPI leader said talking about arenas of cost cutting for the government.

Other proposals might include suggestions on funding the employment guarantee scheme and a need for expediting consultations over job reservations in the private sector.