New Delhi, Jan 28 (KNN) The US-India Strategic and Partnership Forum (USISPF) in its pre-budget recommendation has urged the government to rationalise corporate tax rates for foreign companies.

It said that the rate for foreign companies, including banks be reduced to bring parity and sought to rationalise tax for new manufacturing companies.

Urging India to simplify capital gain tax reforms, USISPF sought harmonising holding periods and rates of different instruments.

In their budget presentation to Union Finance Minister Nirmala Sitharaman, the advisory body has also asked to extend the concessional tax regime to Foreign Portfolio Investment (FPI) from investment in securities.

USISPF has also suggested tax incentives to specific sectors like renewable energy and R&D investment in the health sector.

Other key recommendations of the forum include advocating for a stable and predictable tax environment, improving the ease of doing business environment, rationalisation of the cost of doing business, and rationalisation of tax rates and tariffs.

It also appealed for simplification of direct and indirect tax system in the country.

Among its recommendations on customs tariffs and duties and customs, processes include addressing ambiguities in the customs tariff act on telecom products, an extension of concessional customs duty to advanced biofuel projects and strengthening the process on the ground with respect to trade facilitation schemes like CAROTAR and Faceless Assessment.  (KNN Bureau)