Finance Ministry invites suggestions on tax rates from trade, industry
New Delhi: With preparations for the next Union Budget picking up pace, the Finance Ministry has invited suggestions from trade and industry for changes in tax rates and broadening of base.
The budget is to be presented at the end of February by the Finance Minister. "In the context of formulating the proposals for the Union Budget of 2016-17, the Ministry of Finance would like to be benefited by the suggestions and views of your Association, said an official statement. "You may like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same," it said in a communication to the trade and industry bodies.
The suggestions and views it added "may be supplemented and justified" by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support the proposal.
"The request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity," the ministry said, adding that it would not be feasible to examine suggestions that are either not clearly explained or not supported by concrete justification/statistics.
As regards direct taxes, the suggestion said that while forwarding proposals, "please take into consideration" the announcement made in Budget 2015-16 to reduce the rate of Corporate Tax from 30 per cent to 25 per cent over the next four years along with rationalisation and removal of various kinds of tax exemptions and incentives.The Ministry said the proposals should be sent by October 25.
In run-up to the budget, the government holds talks with various stakeholders like trade unions, economists, industry representatives and social sector activists. Earlier, the Ministry had decided to invite suggestions for the Budget from the general public with a view to infuse more transparency into the Budget-making exercise and to have people as partners in the process of Budget-making.
The ministry has also invited expenditure proposals from different ministries and departments to be incorporated in the Second batch of Supplementary Demands for Grants for 2015-16, the ongoing fiscal.
The Supplementary Demands would be presented to Parliament in the ensuing Winter Session likely to commence in November/December.
