THE Finance Ministry may provide only investment-oriented tax breaks in the direct taxes code (DTC) rather than profit-linked ones, Parthasarathi Shome, Advisor to the Finance Minister said here at an Assocham industry interaction.

The effort will be to give tax breaks for investments and not provide tax incentives from the profits side. This tax policy stance may come as a disappointment to the exporting community, which is looking for the return of profit linked tax incentives to encourage exports.

India Inc pointed out that the recent Budget did not give any tax incentives, such as export profit deduction. Ruling out tax exemption on export profits even in the direct taxes code, Shome said the Finance Ministry was now analysing the recommendations of the Standing Committee on Finance on the Direct Taxes Code Bill.

Besides he also pointed out that the investment allowance proposal in the Budget was intended to encourage investments in plant and machinery focusing on the economic outcome and make the tax policy more investment oriented.