In order to maintain high economic growth, India has to slash personal as well as business tax rates, and lower excise duty rates on manufacturing commodities in the future budget.

In a pre-budget conference with Finance Minister P. Chidambaram, businessmen also asked to eradicate minimum alternate tax (MAT) and dividend distribution tax (DDT), and a cut in excise tax on the majority of manufactured goods to 14% from 16%.

Habil Khorakiwala, Federation of Indian Chamber of Commerce and Industry president and chairman of Wockhardt said that business tax rate should be abbreviated to support manufacturing business houses.

In a note to Mr. Chidambaram, he said, “Reduce corporate tax to 25 percent, which along with surcharge and education cess will calculate at 28.33 percent.”

V.N. Dhoot, Associated Chamber of Commerce and Industry president and Videocon Industries chairman told that the income tax rate should be slashed to 25% from 30% for income over Rs 500,000.

After the conference, Mr. Dhoot told newspersons, “The finance minister was jubilant over growth in direct tax collection and he said both revenue and fiscal deficit will be under control. I think this year income tax rate will be reduced.”

Larsen & Toubro (L&T) chairman, A.M. Naik, said the administration should eliminate MAT and DDT.

Anti-dumping taxes on cheaper Chinese products should be levied as domestic producers were at a disadvantage after the rupee admiration, he said.

Malvinder Singh of Ranbaxy Laboratories and Swati Piramal of Nicholas Piramal told that the companies involved in research should get tax benefits.

Industry bodies also asked Mr. Chidambaram to set up goods and services levy from April 2010, and peg the rate at 20%.