Finance Ministry seeks industry input on taxation for FY24 Union Budget

19 Oct 2022 , 08:03 AM

India’s finance ministry has begun stakeholder engagement for the federal budget for the upcoming fiscal year by soliciting ideas from business and trade organizations regarding the nation’s direct and indirect taxes.

The finance ministry stated that the industry’s demands must be supported by arguments, which they may put in the budget if they think they have value.

Industry participants have until November 5 to submit ideas for changes to the duty structure, rates, and expansion of the tax base for both direct and indirect taxes. On February 1st of the following year, the Union Budget for the upcoming fiscal year beginning in April will probably be presented to the parliament.

Since the government is striving to gradually eliminate tax benefits, deductions, and exemptions while also rationalizing direct tax rates, the ministry stated that the business should highlight “positive externalities” emerging out of the proposals.

Regarding indirect taxes, value addition at each stage of manufacture should be used to support a request to fix an inverted duty structure for any commodity.

Industry participants have also been asked to contribute ideas for lessening the burden of compliance, delivering tax certainty, and decreasing litigation.

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