Budget 2024: Industry Bodies Call For Tax Cuts, GST Reforms, Capital Gains Tax Rationalisation

Industry bodies have called for personal tax cuts, rationalisation of capital gains tax, and GST reforms ahead of the July budget. Representatives from the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry, and PHD Chamber of Commerce and Industry met with the Revenue Secretary on Tuesday to submit their pre-budget recommendations.

The CII proposed increasing the personal tax exemption limit at lower income levels to boost consumption, according to ITC Ltd. Managing Director and CII President, Sanjiv Puri. Puri suggested that the recent RBI dividend could enable the government to increase public capital expenditure.

Industry bodies also advocated for simplifying the capital gains tax structure. Additionally, CII recommended enhancing the National Mission on Water Security and establishing a roadmap to raise public health expenditure to 3% of GDP and education spending to 6% of GDP by 2030.

CII further suggested an employment-linked incentive scheme for labour-intensive sectors with high growth potential, as well as a social security fund for gig and platform workers.

Former FICCI President Subhrakant Panda highlighted their focus on sustaining growth momentum, simplifying rules, reducing litigation, and expediting dispute resolution. "We stayed away from specific tax exemptions and concessions," he said. Pranav Sayta, FICCI's tax chair, emphasised the need to level the playing field for service and manufacturing companies in terms of tax relief and breaks.

FICCI also raised concerns about quick dispute settlements and flexible payment windows to prevent cash flow issues due to pending appeals.

PHDCCI's recommendations aimed at improving the ease of doing business included increasing personal tax exemptions, rationalising TDS, and making the GST appellate process more efficient, according to Senior Vice President Hemanth Jain.