The Ministry of Finance has asked for suggestions on the taxation of industries and commercial organizations for the 2022-2023 budget, which will set the tone for the growth of the Indian economy affected by the COVID-19 pandemic. In a communication to professional and industry associations, the ministry invited suggestions for changes in the structure of duties, rates and broadening of the tax base on direct and indirect taxes giving an economic rationale for the same.
Suggestions could be sent to the ministry by November 15, 2021, he said.
“Your suggestions and views can be supplemented and justified by relevant statistical information on production, prices, revenue implications of suggested changes and any other information in support of your proposal,” he said. declared.
The demand for the correction of the reverse tariff structure, if any for a product, should necessarily be supported by added value at every stage of the product’s manufacturing, he said. It would not be possible to consider suggestions that are not clearly explained or that are not supported by adequate justification or statistics, he said.
The 2022-2023 budget is expected to be presented to Parliament on February 1 of next year. This will be the fourth budget of the Modi 2.0 government and Minister of Finance Nirmala Sitharaman.
Next year’s budget is expected to address the critical issues of generating demand, creating jobs and putting the economy on a sustained growth path of 8 percent and above.
“As can be seen, the government’s medium-term direct tax policy is to phase out tax incentives, deductions and exemptions while simultaneously streamlining tax rates,” the letter said.
Currently, more than 100 exemptions and deductions of various kinds are provided for in the Income Tax Act. The ministry also asked for suggestions on compliance reduction, tax certainty and litigation reduction.
However, he clarified that goods and services (GST) issues are not considered as part of the budget, as they must be decided by the GST Council. A recommendation on central excise and tariffs could be given, he said.