 "Industry expects tax regime simplification in Budget: Ficci survey")
A pre-budget industry survey by FICCI has found that a majority of industry members expect simplification to the tax regime and incentives for green tech and easing compliances through digitisation in the upcoming FY26 Budget.
Expressing concerns over muted demand in the economy, companies have called for a review of the direct tax structure.
A significant number of companies said that a relook at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy.
“The respondents also called for a strong policy push on simplifying the tax regime, incentivising the development of green technologies or renewables and EVs, and easing compliances through digitisation,” the survey by the Federation of Indian Chambers of Commerce and Industry said (FICCI).
On the taxation front, providing tax certainty, addressing custom duty inversion, and rationalisation of TDS provisions were highlighted as important themes by the participants.
Also Read
The survey drew responses from over 150 companies spanning across diverse sectors between December 2024 and mid-January 2025.
About 47 per cent of participants expected the government to meet the fiscal deficit target of 4.9 per cent for FY 2024-25 and another 24 per cent reporting that the government could improve and report a lower fiscal deficit number for the current year.
Nearly 60 per cent of participants projected a GDP growth rate between 6.5 and 6.9 per cent for 2025-26 with 64 per cent showing optimism towards India’s growth prospects ahead of the Union Budget.
Around 68 per cent of companies have called for a thrust on capital expenditure to sustain the growth momentum. FICCI survey said that the industry is expecting an increase of at least 15 per cent in capex allocation for FY 2025-26.
Infrastructure, manufacturing, agriculture and rural development were mentioned by companies as critical areas for policy attention. Nearly 40 per cent of the respondents stressed the continued need to support the MSMEs, to drive employment creation. “Targeted measures for MSMEs ensuring streamlined credit access, and support for adoption of new technology and sustainability measures were called for,” the survey said.
Export competitiveness was also highlighted as an area for attention by survey respondents who suggested further improvement in the efficiency of logistics and continuation of interest equalisation schemes to enhance India’s global trade position.