Representatives from various industry organisations have advocated for a reduction in personal income tax rates to increase disposable income for the middle class. They also proposed lowering excise duty on fuel and recommended measures to support employment-driven sectors during their traditional pre-Budget meeting with the Finance Minister on Monday.
At the fifth pre-Budget consultation meeting, industry leaders expressed concerns about the significant dumping of products from China in global markets, including India. They also discussed the impact of the “climate emergency” on food security and inflation. The Union Budget for 2025-26 is set to be presented on February 1.
The meeting was attended by the Finance Minister, the Finance Secretary, the Secretary of the Department of Investment and Public Asset Management (DIPAM), the Secretaries of the Department of Economic Affairs, and the Chief Economic Adviser to the Government of India, among other officials.
Following the meeting, CII President Sanjiv Puri commented that while the Indian economy is robust, various global challenges remain. Puri stated, “We are witnessing the dumping of numerous products from China into different regions globally, including India. Furthermore, the climate emergency affects food security and inflation, among other concerns. In light of this, we have proposed several recommendations.”
The CII has called for initiatives to boost sectors with significant employment potential, such as:
- Garments
- Footwear
- Tourism
- Furniture
They have also provided recommendations for micro, small, and medium enterprises (MSMEs) and encouraged India’s integration into global value chains.
To stimulate consumption, Puri suggested implementing tax relief for individuals earning up to Rs 20 lakh, which would enhance disposable income and ultimately increase government revenues.
Puri added, “We have also proposed a minor reduction in excise duty on petroleum products, which would contribute to increasing disposable income and create a beneficial cycle for consumers.”
FICCI Vice President Vijay Sankar, who was present at the meeting, remarked, “The Finance Minister and her team listened attentively to the industry representatives today. Approximately 13 representatives from various industry chambers participated. Common issues were noted in several presentations, particularly regarding the temporary slowdown due to product dumping, especially from neighbouring countries like China, which is currently facing its own economic challenges.”
PHDCCI President Hemant Jain conveyed, “Our recommendation to the government was to reduce personal income tax rates, which would provide additional disposable income and stimulate demand, ultimately helping to mitigate inflation. We have also called for simplification of GST.”
Assocham President Sanjay Nayar emphasised the importance of addressing the needs of MSMEs, stating, “They are the backbone of the supply chain. We focused on challenges such as credit flow, complex registration processes, and numerous TDS regulations. Our focus was on simplifying procedures and rationalising TDS.”
[ad_1]