Updated on Saturday, July 04, 2009, 21:11 IST

Mumbai, July 04: Former Finance Minister Yashwant Sinha said that the government should do away with transaction taxes.

"All transaction taxes should go. I suggest taxing the profit from the transaction rather than taxing the transaction," he said at a panel discussion held here.

Sinha was giving these suggestions at a panel discussion organised by a news channel on Friday night in view of the Budget presentation to be made on July 6.

He said he was okay with increasing the foreign direct investment limit to 49 per cent from 26 per cent.

"We were keen to have 49 per cent FDI limit during our tenure but the Congress which had the majority in Rajya Sabha at that time insisted that it should not exceed 26 per cent. I will have no problem in increasing FDI limit," Sinha said.

He suggested that the Finance Minister could do away with surcharges and reduce the burden on salaried people.

Godrej Group Chairman Adi Godrej said more the directives from the economic survey were implemented the better it would be.

"The best way to reduce deficit is to get the growth up, but as Sinha said it will take time, but I hope that the budget is growth-oriented," Godrej said.

Bureau Report