Dividend tax on firms likely to go
New Delhi: The finance ministry is learnt to be thinking of removing dividend tax currently levied on companies, instead of slashing the corporate tax rate to 30 per cent in Budget 2004-05. Companies are at present saying that they are burdened with double taxation. This is because companies pay a corporate tax on their profits before they declare dividends.

The sources said a reduction in the corporate tax rate from the existing 36.75 per cent to 30 per cent would not give lead to a rise in receipts, unless the huge number of exemptions were done away with. The sources said unlike income tax, where collection could rise if rates went down, corporate tax revenue was not rate elastic.

The report of the task force on direct taxes headed by Vijay Kelkar, adviser to the finance minister, has suggested elimination of the dividend tax and reduction of the corporate tax rate to 30 per cent to integrate the tax system.
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IIMs agree on common fee structure
Ahmedabad: The six premier management institutes IIMs are said to be planning to levy to uniform fee across the six institutes.
The directors of the six IIMs who met here said they would have put forth a single proposal by and not six different proposals.
The IIMs of Ahmedabad and Bangalore have decided against effecting a lowering of the existing annual fee of Rs1,58,350 to Rs30,000 as directed by the former Union HRD Minister, Murli Manohar Joshi. The IIMs have been given till June 25 to decide the issue once and for all. This date is crucial, as classes for the 2004-06 batch Post-Graduate Programme (PGP) students will begin on June 26.
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Industry growth robust in 2003-04: CII Ascon Survey
New Delhi: According to a survey conducted by the Confederation of Indian Industry (CII) production grew in 110 of the 129 sectors it covered in a regular survey of member companies and affiliated associations in 2003-04. Among the sectors where production grew, 26 showed excellent growth, 35 reported high growth and 49 moderate growth, CII said. The statement said a growth rate of more than 20 per cent was considered excellent, 10 to 20 per cent was regarded as high and zero to 10 per cent moderate. CII said Indian factories churned out more televisions, cars and machines in the past few months as consumers went on a spending spree after good monsoon rains boosted rural incomes and local companies moved to boost capacities.

CII said production of edible oil grew 49 per cent, in 2003/04, auto components were up 20 per cent, colour picture tubes 23 per cent and electrical cable and wire 30 per cent. The auto industry, drugs and pharmaceuticals, colour TVs, aluminium, diesel, sponge iron, ceramics, switchgears, industrial furnace, oil and gas equipment grew between 10 and 20 per cent. According to CII in the year before, 2002-03, only 15 of the 134 sectors recorded excellent growth, 34 sectors high growth and 68 moderate growth while production fell in 19 sectors which included fertilisers, high density polyethylene, telecom cables, diesel engines, mopeds, sheet glass and vegetable oil.
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AP for `power from garbage' projects
Hyderabad: The Andhra Pradesh Government plans to promote projects that generate power from garbage. The Chief Minister, Dr Y.S. Rajasekhara Reddy, while inaugurating the Rs 10-crore `Paryavarana Bhavan' that houses the Andhra Pradesh Pollution Control Board's (PCB) head office here expressed concern over growing water pollution and environmental pollution and said his Government would take measures to improve the green cover which would also provide employment opportunities for the farming community.

He also inaugurated the online ambient air quality monitoring system set up by the APPCB in Hyderabad. Besides monitoring presence of some hazardous chemical compounds, the system would also gather meteorological data. To mark the World Environment Day, the AP PCB selected GlaxoSmithKline Consumer Healthcare (East Godavari unit), Nicholas Piramal India Ltd (Medak) and Sree Rayalaseema Hi-strength Hypo Ltd (Kurnool) for `Best practices in Cleaner Production'.
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IMF says 10 percent growth rate feasible
New Delhi: The International Monetary Fund (IMF) has said the government has been given "a time of opportunity' for building on "the successes already achieved." Delivering her keynote speech at the Stanford India Conference, IMF acting managing director Anne O Krueger said a growth rate of 10 per cent this year for the Indian economy was both necessary and feasible. She said the country has been given an opportunity to build on the success attained so far because of economic reforms to push ahead with an ambitious reform agenda which could bring great rewards for the Indian economy, and for all Indians.

She added that there has been a significant fall in poverty rates because of reforms. Poverty has declined from just under 41 per cent in 1992-93 to less than 29 per cent in 2000, with the reduction taking place both in rural and urban areas. She added that these figures give the lie to all the commentators who have been arguing that the election result demonstrated the narrow and selective impact of India's reform programme.
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