Industry body CII has asked the government to take steps in the Budget to boost investments as economic growth has slowed.
In its pre-budget memorandum to the Ministry of Finance, CII has asked for measures that can help in revival of growth momentum of the economy at the earliest.
"The recent reform measures have, no doubt, rekindled business confidence but much more needs to be done to provide a fillip to the investment cycle in the present milieu of uncertain domestic and global economic environment," it said.
It has suggested various steps to restart the investment cycle and that includes allowing accelerated depreciation rate on plant and machinery from the present level of 15 per cent to 25 per cent for the next 3 to 5 years period.
At a time when new investments have reduced to nearly half of the last year level, raising depreciation rate will incentivise industry to make fresh investments, the report added.
It also asked for abolition of surcharge and cess from corporate tax and exempting infrastructure and SEZ companies from the levy of minimum alternate tax.
CII has also suggested reduction of Central Sales Tax rate from 2 per cent to 1 per cent.
It said that the industry body has resisted from asking for stimulus package involving reduction in excise and service tax rates in view of already high level of fiscal deficit.