'Restructure personal tax slabs'

Budget must focus on stimulating savings, investment and employment in manufacturing, besides widening tax base by re-modelling rates and removing barriers to growth of agriculture.

Four key areas that Budget 2005-06 must focus on are: Stimulating savings, investment and employment in manufacturing sector; widening the tax base by re-modelling tax rates; removing barriers to the growth of agriculture, agro-processing and agro-business and building world class infrastructure.

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To facilitate savings and encourage voluntary tax compliance, personal tax slabs should be restructured and made more equitable with a basic exemption of Rs 1 lakh and the maximum rate of 30 per cent applicable on income over Rs 10 lakh -- it is Rs 40 lakh in China. This will encourage small businesses to become tax payers.

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