Finance Ministry has sought suggestions from trade and industry on tax proposals for the Budget of Fiscal Year 2023-24. The budget for next fiscal is likely to be presented on February 1.
Suggestions can be given for Direct Taxes (Personal Income Tax and Corporate Income Tax), Central Excise and Customs Duty. GST (Goods & Services Tax)-related proposals are not examined as part of the budget exercise, a letter sent to Trade and Industry Association said.
“Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support your proposal,” the letter said. For example, a request for correction of the Inverted Duty Structure (higher duty on inputs and lower duty on output) should necessarily be supported by value addition at each stage of commodity manufacturing.
“It would not be feasible to examine suggestions that either not clearly explained or which are not supported by adequate justifications/statistics,” it said.
Talking about direct taxes, the letter reiterated that the medium-term effort is to phase out tax incentives, deductions and exemptions while simultaneously rationalising tax rates. “You may also like to give your suggestions for reducing compliances, for providing tax certainty and reducing litigations,” the letter said.
The suggestions can be send by November 5.