Finance Ministry Seeks Input On Tax Reforms From Trade Bodies For Upcoming Budget
The suggestions need to be submitted to the ministry by June 17.
The Finance Ministry has invited suggestions on direct and indirect taxes and changes in laws to reduce compliances for the 2024-25 Budget, from trade and industry associations. These suggestions need to be submitted to the ministry by June 17. Finance Minister Nirmala Sitharaman is expected to present the full budget for 2024-25 in Parliament in the second half of July.
According to the ministry, the suggestions could include changes in the duty structure, rates, and ideas on broadening the tax base for both direct and indirect taxes, with economic justifications for the same.
For changes in customs and excise duties, trade and industry must supplement and justify their demands with relevant statistical information about production, prices, and the revenue implications of the proposed changes. Requests for correcting an inverted duty structure need to be supported by value addition at each stage of the commodity's manufacturing process.
Regarding direct taxes, the ministry stated that suggestions could focus on reducing compliances, providing tax certainty, and reducing litigation.
The government policy in the medium term aims to phase out tax incentives, deductions, and exemptions, while simultaneously rationalising tax rates, the ministry added.
(With PTI inputs)
