Government is not in hurry to implement new tax regime and it will thoroughly examine the tax structure and its impacts before introducing it in 2011.

The statement was made by Union Finance Minister Pranab Mukherjee while discussing the matter with a group of industry representatives. He said that provisions of capital gains tax on NRIs, double taxation avoidance agreements, taxation of foreign firms and charitable organizations would be scrutinized to address all grievances.

Mr. Mukherjee said, “We want to present the stakeholders with a tax regime which is simple and broad based leading to lowering of tax rates, better compliance and reduced litigation.”

Honorable Minister further added that every care would be taken for adopting new tax regime and due weight age would be given to the suggestions of the stakeholders.

Chamber of commerce and other prominent professional bodies hailed the provisions of new tax regime though they pointed out some anomalies that, as per them, must be amended.

The new tax regime proposes the minimum alternate tax (MAT) which is aimed to bring company’s total assets under tax structure instead of their net profit.

Industry expressed displeasure over MAT with the FICCI President Harshpati Singhania saying, “The proposed MAT is highly disadvantageous to capital intensive industries, long gestation projects and industries which are less profitable or even loss-making.”