Ahead of the Union budget, Godrej Group chairman Adi Godrej on Monday said the government needs to move toward implementing a goods and services tax regime besides taking measures to control inflation.
"We must move rapidly toward the goods and services tax regime," he said on the sidelines of a CII-organised conference in Mumbai.
The budget, to be presented on February 28, should also focus on fiscal measures to tackle inflation that is presently on a two-year high at 6.73 per cent, Godrej said.
Reduction in tax rates would
help in controlling inflation. "A general reduction in tax rates will have a positive impact," he said, adding that "besides, collection will also increase."
An appreciating rupee would also help in reining in inflation, he said, adding it was not necessary for RBI to actively prop up the Indian unit.
"Let the rupee find its own level," he said. Asked whether the FMCG sector, in which his group is a major player, had any wish list for the Finance Minister, Godrej said there were so specific requests as the sector was performing well.