Govt. Invites Suggestions From Industry And Trade Associations For Changes In Direct and Indirect Taxes in Budget 2023-24

The Ministry of Finance has invited suggestions from industry and trade associations for changes in direct and indirect taxes in Budget 2023-24.

The Ministry of Finance would like to gain from the Trade Association's suggestions and viewpoints as it develops the proposals for the Union Budget of 2023–24.

The industry and trade associations might send their recommendations for modifications to the structure, rates, and expansion of the tax base for both direct and indirect taxes, along with a business case for the changes.

The suggestions and views may be supplemented and justified by relevant statistical information about the production, prices, revenue implications of the changes suggested, and any other information to support your proposal. The request for correction of the inverted duty structure, if any, for a commodity should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggestions that are either not clearly explained or that are not supported by adequate justification or statistics.

As can be seen, the government's strategy for direct taxes in the medium term is to gradually eliminate tax breaks, exemptions, and incentives while also rationalising the tax rates. Additionally, it would be ideal if the suggestions and recommendations included a list of any positive side effects they may have, as well as a quantification of those effects.

The associations might also want to offer your ideas for lowering compliance rates, boosting tax certainty, and lowering litigation.

"Your suggestions and views may be emailed, as word documents in the form of separate attachments, in respect of indirect taxes [Customs and Central Excise [for commodities outside GST)] to budget-cbec@nic.in and direct taxes to ustpl3@nic.in," the government notified.

Dated: 14.10.2022

Click Here To Read Notification