Industry Bodies Submit Budget Wish-List To Finance Ministry

Industry Bodies Submit Budget Wish-List To Finance Ministry

Seek Amnesty Scheme for Customs and easier tax compliance

In the meetings held with top officials of the Ministry of Finance, representatives from the Confederation of Indian Industries (CII), the Federation of Indian Chambers of Commerce & Industry (FICCI), the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and the PHD Chamber of Commerce and Industry (PHDCCI), have put forth detailed recommendations for the up-coming Budget on 01 February 2025.

The Indian industry bodies desired the Amnesty Scheme for Customs, tax cuts for individuals and Limited Liability Partnerships (LLPs), and streamlined tax compliance processes. They also urged the government to expedite faceless appeals, establish a dedicated dispute resolution system, and boost infrastructure spending.

FICCI sought the introduction of the Amnesty Scheme as a one-time settlement to clear past dues, urging that it would help the industry to reduce the baggage of litigation.

To enhance women-led development, FICCI urged the government to exempt reimbursement of daycare expenses from perquisite taxation.

Similarly, ASSOCHAM pitched for the introduction of a comprehensive Tax Amnesty Scheme, stating, "A one-time settlement scheme to clear past litigations can be considered by the government on the lines similar to Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 for the pre-GST era indirect taxes and Vivad Se Vishwas for income tax.”

It requested relief for importers against disputes related to the Customs Act, partial waiver of the duty in dispute, depending on the quantum involved and complete waiver of interest and penalty.

Industry chambers also sought simplified compliance with tax deducted at source (TDS) and the introduction of a new independent dispute resolution forum for effective and time-bound decisions.

PHDCCI suggested reducing tax rates for individuals and LLPs, fast-tracking faceless appeals by introducing a statutory period; increasing the limit of presumptive tax scheme for professionals; expanding the PLI scheme beyond the 14 sectors; changing the classification norms of MSMEs for NPAs and interest equalization scheme on pre and post shipment export credit for MSMEs services.

Hemant Jain, the President of PHDCCI stated, “We expect a significant increase in the size of the Union Budget from Rs.48.2 lakh crore for 2024-25 to over Rs.51 lakh crore for 2025-26 and continued capital expenditure expansion from Rs.11.11 lakh crore for 2024-25 to over Rs.13 lakh crore for 2025-26.”

ASSOCHAM also sought to decriminalize certain TDS defaults under Section 276B, which provides imprisonment of up to seven years for non-compliance with certain TDS provisions.

It urged, "The government should consider amending this to exclude from its ambit any failure to pay tax or ensure payment of required tax.”

ASSOCHAM also desired that criminal proceedings should apply only if the taxpayer enriches himself at the government’s expense and not if payments were made without applying TDS. Though normal penalty and interest consequences could be applicable.

Meanwhile, CII entreated the government to increase the capex by 25 percent over 2024-25 (BE) with a sharp focus on infrastructure related to rural areas, agriculture, and the social sector.

It also pitched reforms in the tax system, including simplifying taxes, increasing India's tax competitiveness, broadening the tax base and reducing tax litigation to build a globally competitive Indian economy.