Now, about the question of the taxation on the corporate sector. This is one of the points raised by many Members. Some have said that I have given an overdose and I have unnecessarily touched the corporate sector and there by created conditions which will not be helpful to economic growth. This was the argument at one end. At the other end, it has been said that I have completely left the corporate sector untouched. So, I think the House would. Know that the truth lies somewhere in between, and there is no doubt about it.

As far as the corporate sector is concerned, the total incidence of the new proposals this year would be about Rs.16 crores, and the total revenue from the direct taxation this year is expected to be Rs. 27 crores. So, Hon. Members would very obviously see that it is very simple arithmetic, that more than 50 per cent contribution from direct taxation is from the corporate sector. So, to say that it is not touched is not seeing the obvious thing.

It has been said on the one side that by raising corporate taxation to the extent I have done, I would be discouraging investment. It has also been urged on the other hand that I have not increased corporate taxation sufficiently. I do not think that any apology is needed for raising Rs.16 crores as additional revenue under the corporate sector in a year in which I have had to raise a total of Rs. 220 crores by way of additional taxation including the share of the Centre and the States. If the corporate sector feels that no matter what the circumstances of the nation may be, they should somehow enjoy permanent immunity from additional taxation, I am afraid they are likely to have little sympathy from this House or from the people at large.

The only question is therefore whether while recognising the need for corporate sector also to make a significant contribution, would it have been better to raise corporate taxation in general rather than remove or reduce some of the concessions which have outlive their utility? I do not propose at this stage to go into the defence of each of the proposals regarding the corporate taxation which possibly we might discuss at the stage of the Finance Bill.

To those who feel that the corporate sector should have been made to bear a larger proportion of the total tax burden, I would say only this much that particularly the one relating to the development rebate- it is not merely that I have touched the corporate sector, but I have made certain announcements on many other policy matters will cast a much longer shadow than what might have been thought of at first sight. I make no apology for the fact that in general our rates of corporate taxation are somewhat higher than those in the other countries. At the same time, there is urgent need to present something which will stimulate growth of industrial production. I believe that the selective approach that I have adopted will stimulate industrial investment and growth over the next few years and at the same time increase substantially the contribution of the corporate sector to the national exchequer in the long run. This is the approach I have taken in this particular matter.