Budget 2023-24: Finance Ministry invites industry suggestions on taxes

The deadline for sending suggestions for changes in the duty structure, rates, and broadening of tax base on both direct and indirect taxes is November 5.

“The industry also needs to submit the justification for their demand which, if found with merit, could become part of the Union Budget for 2023-24 (April-March), to be tabled in Parliament on February 1, 2023,” the ministry said in an official statement.

“In the context of formulating the proposals for the Union Budget for 2023-24, the Ministry of Finance would like to be benefited from the suggestions and views of your association,” the ministry added.

Since the government is working to phase out tax incentives, deductions, and exemptions while simultaneously rationalizing direct tax rates, the industry should point out ‘positive externalities’ arising out of the recommendations, it said.

The ministry also sought industry suggestions on reducing compliance burdens, providing tax certainty, and reducing litigation.

In the indirect taxes front, the request for correcting inverted duty structure for any commodity should be supported by value addition at each stage of manufacturing.

The central government had begun month-long budget-making exercise for the financial year 2023-24 on October 10. The deliberations would end on November 10, with consultations with the Ministry of Cooperation, Department of Agriculture and Farmers Welfare, Department of Agricultural Research and Education, Ministry of Road Transport and Highways, Ministry of Railways, and Ministry of Petroleum and Natural Gas. 

It will be the fifth Budget of the Narendra Modi 2.0 government and Finance Minister Nirmala Sitharaman and the last full Budget before the general elections due in April-May 2024.

(With PTI inputs)