FinMin seeks trade, industry suggestions on taxes for 2023-24 Budget

Kickstarting stakehoder consultation for 2023-24 Budget, the finance ministry has sought suggestions from industry and trade associations regarding direct and indirect taxes.

Along with the suggestions, the industry has to submit 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 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.

"In the context of formulating the proposals for the Union Budget for 2023-24, the Ministry of Finance would like to be benefited by the suggestions and views of your association," the ministry said.

It said that since the government is working to phase out tax incentives, deductions and exemptions while simultaneously rationalising direct tax rates, the industry should point out 'positive externalities' arising out of the recommendations.

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.