The Finance Ministry’s Revenue Department has asked trade and industry bodies to come up with suggestions on tax rate changes and ease of compliance expected in the Union Budget for the 2026-27 fiscal, which is to be presented on February 1, 2026.
In a customary communication to trade and industry associations in the run-up to the Union Budget, the department’s ‘tax research unit’ has asked them to send their suggestions by November 10.
“Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implications of the changes suggested and any other information to support your proposal,” the communication added.
The ministry said the government policy wants to phase out tax incentives, deductions and exemptions in the medium-term while simultaneously rationalising the rates of tax.
Also Read: New bank norms: Up to 4 nominees allowed per account holder
The suggestions, it said, could be for changes in the duty structure, rates and broadening of the tax base on both direct and indirect taxes, but should be supported by economic justification.
Requests for correction of inverted duty structure, if any, for a commodity, should be supported by value addition at each stage of manufacturing of the commodity, it added.
The ministry asked the industry to list out “positive externalities” arising from the direct tax recommendations and their quantification.
Follow us
