Budget 2024: Finance Ministry invites industry views on tax rates, litigation laws

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.

The suggestions are to be sent to the ministry by June 17 and the full budget for 2024-25 is expected to be presented in Parliament in the second half of July.

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The suggestions could include changes in the duty structure, rates and ideas on broadening of tax base on both direct and indirect taxes giving economic justification for the same, as per the ministry.

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For changes in customs and excise duties, the trade and industry would have to supplement and justify their demand with relevant statistical information about production, prices, and revenue implication of the changes suggested.

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The request for correction of inverted duty structure would have to be supported by value addition at each stage of manufacturing of the commodity.

With regard to direct taxes, the ministry said the suggestions could be also on reducing compliances, providing tax certainty and reducing litigations.

It said the government policy in the medium term is to phase out tax incentives, deductions and exemptions while simultaneously rationalising rates of tax.