New Delhi, Jul 25 (KNN)  Finance Minister Arun Jaitley today said China has mastered the art of low cost manufacturing to make its products globally competitive and the NDA Government would move in that direction so that the economic activity is given a boost by support to the manufacturing.

Replying to a debate on the Finance Bill in the Lok Sabha, the Finance Minister said "they (China) have mastered the art of manufacturing by lower rates of interest and lower taxes".
 
Rejecting criticism that the tax concessions to certain industries were sops to the corporates, he said, these were concessions to the consumers and not corporates. He cited examples of passenger cars which have been given extension of excise benefits till December resulting in higher sales of units.

While the demand from the MSME industry associations was that the limit for Investment Allowance be reduced below Rs 25 crore, Jaitley said, the limit which has been lowered from Rs 100 crore would help the medium scale companies.

He also announced that the Central Board of Direct Taxes would now be given powers to waive the penalty for late filing of tax returns which is on the basis of per day calculation. Though the per day calculation remains intact, the DBDT will have power to waive the same.

However, some experts wonder whether it would not mean giving discretionary powers to the taxmen who could misuse the same.  (KNN/PC)