Budget 2020: FinMin seeks suggestions for rationalising income tax, other duties

The finance ministry has kicked off the exercise to formulate the next budget by seeking suggestions on changes in direct and indirect taxes from industry and trade associations.

Finance Minister Nirmala Sitharaman, who had to announce additional measures to stimulate a slowing economy within a month of her maiden budget being approved by Parliament, is due to present the annual budget for the financial year 2020-21 on February 1.

While the ministry holds pre-budget consultations with representatives of different sectors and stakeholders, the Department of Revenue in the finance ministry put out a letter seeking suggestions for changes in income tax rates for both individuals and corporates as well as in indirect taxes such as excise and customs duty.

The November 11 letter asked industry and trade associations to give "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."