The Finance Ministry has extended an invitation to trade and industry associations to submit their suggestions on direct and indirect taxes, as well as proposals for reducing compliance burdens, in preparation for the 2024-25 Budget. The ministry has set a deadline of June 17 for submissions, with the full budget expected to be presented in Parliament in the second half of July.

The ministry is open to suggestions on changes in the duty structure, tax rates, and ideas for broadening the tax base for both direct and indirect taxes. These proposals should be accompanied by economic justifications to support the suggested changes.

For proposed changes in customs and excise duties, stakeholders are required to provide relevant statistical information, including data on production, prices, and the potential revenue implications of the suggested changes. Additionally, any requests for correction of inverted duty structures must be backed by details on value addition at each stage of the commodity's manufacturing process.

In terms of direct taxes, the ministry is particularly interested in suggestions that aim to reduce compliance burdens, provide tax certainty, and minimize litigations. The government’s medium-term policy focuses on phasing out tax incentives, deductions, and exemptions, while simultaneously rationalizing tax rates.

The Finance Ministry reiterated its commitment to phasing out various tax incentives, deductions, and exemptions as part of its medium-term policy. This initiative aims to simplify the tax structure and make it more equitable by rationalizing tax rates.

The Finance Ministry's call for suggestions underscores its proactive approach to involving industry stakeholders in the budget-making process. By seeking input from trade and industry associations, the ministry aims to ensure that the 2024-25 Budget addresses the concerns of businesses while fostering a conducive environment for economic growth.

The deadline for submitting suggestions is June 17. The ministry's proactive engagement with industry stakeholders is expected to yield valuable insights that will shape the upcoming budget, ensuring it aligns with the needs of the economy.