New Delhi [India], December 6 (ANI): Hailing the government’s powerful package of Rs 2.1 lakh crore for bank recapitalisation, Shobhna Kamineni, President Confederation of Indian Industry (CII) has urged the government to take further reforms to strengthen the banking sector.

“Banks may be permitted to reissue the recapitalisation bonds which can be purchased by institutional investors and even general public. It would help them raise another 1.35 lakh crore,” the CII said.

The industry body has suggested lowering the government stakes in banks to 52 percent and progressively to 33 percent in order to drive efficiency in the banking system and also allowing the banks to securitize good loans and sell them.

The suggestions are part of the pre budget consultation talks with the Finance Minister Arun Jaitley and also emphasized on promoting cashless economy, reduction in personal income tax and extenxive usage of IT and data analytics for improving tax administration

CII has recommended several steps for the effective implementation of Goods and Services Tax (GST) which include a suggestion for three rates and asked the government to consider bringing petroleum, electricity, real estate sector and alcohol under the ambit of GST.

In order to make India an attractive investment destination for Indian industry and global investors, it is necessary that the overall tax burden on Indian Corporate sector should be reduced.

“The roadmap for reduction in corporate tax rate for India should include reducing the corporate tax rate to 18 percent at the earliest with the withdrawal of tax incentives and exemptions and withdrawal of surcharges and cesses,” the CII said.

The CII has recommended for creation of ‘National Power Distribution Company’ (NPDC) which will create a unified market for power as the power sector is in urgent need for reform to address stressed assets and challenges in distribution.

It also suggested setting up of a ‘Land Bank Corporation’ to monetise government-owned land as vast public land often remains underutilised and also stressed on the need to revitalise Public-Private Partnerships in the country in the infrastructure sector.(ANI)

This is published unedited from the ANI feed.