Delay in the passage of bills like Goods and Services Tax (GST), which are crucial for economic growth, is a cause of concern for the Indian industry, according to Confederation of Indian Industry.
The current logjam in Parliament has become a cause of worry for the Indian industry, as it is delaying the passage of bills like Goods and Services Tax (GST), which are crucial for economic growth, according to Confederation of Indian Industry or the CII.
The GST Bill seeks to create a pan-India tax regime and a common market, ending the multiplicity of central and state taxes.
The director general of CII, Chandrajit Banerjee said, "Industry is keen to undertake the next cycle of investments as soon as the economic reforms process kicks in. With several crucial economic bills getting delayed, investment deceleration is plaguing the economy."
The Godrej Group Chairman, Adi Godrej said "The GST is one of the most critical reforms for India as it will create a smooth and efficient market, lower costs and raise tax revenues.... will help generate millions of new jobs. But for this, the Parliament must transact business."
Others too have echoed the urgency to the government to end the stalemate in Parliament and implement the new tax regime by the next financial year.
"We would sincerely wish that attention can be devoted to these and other important economic issues. The pace of reform that we have seen in the last two sessions of Parliament should have continued unabated in this session too," says Sumit Mazumder, President of CII.
According to senior members of the industry body, Parliament needs to unlock the investment pipeline through pending legislation, as the core sector growth has slowed down, while bank credit is locked up.
"Industry expects that our leaders would seize the window of opportunity for the country for expediting growth, which is so important in this stage of India's development," former CII president Ajay Shriram said.
The government needs Parliament to approve the Constitution Amendment Bill in the current monsoon session ending August 13 before GST can be rolled out from April 1, 2016, replacing all existing indirect taxes like excise and VAT.