Finance Ministry Seeks Industry Input for 2024-25 Budget Reforms

The Finance Ministry invites suggestions from trade and industry associations on direct and indirect taxes for the 2024-25 Budget. The ministry is open to changes in duty structures and tax bases, aimed at reducing compliance burdens. Suggestions are due by June 17, with the final budget presentation slated for July.

The Finance Ministry has officially called upon trade and industry associations to provide their suggestions regarding direct and indirect taxes for the upcoming 2024-25 Budget. The aim is to reduce compliance burdens and enhance the economic framework.

Interested associations are required to submit their proposals by June 17. The complete budget is anticipated to be presented in Parliament during the second half of July.

The proposed suggestions may include adjustments to the duty structure, tax rates, and innovative ideas for broadening the tax base, together with economic justifications. For changes specifically in customs and excise duties, substantial statistical data related to production, pricing, and revenue impact must be included.

Additionally, proposals to correct an inverted duty structure need to demonstrate value addition at each stage of a commodity's manufacturing process. In terms of direct taxes, suggestions to reduce compliance requirements, ensure tax certainty, and minimize litigations are encouraged.

The ministry reiterated that the government’s medium-term policy focuses on gradually phasing out tax incentives, deductions, and exemptions, while rationalizing taxes.