India's finance ministry seeks industry suggestions on tax changes for FY24 Union Budget

India's finance ministry has asked for suggestions from industry and trade associations regarding the country's direct and indirect taxes, as it kickstarted stakeholder consultation for the federal budget for the next fiscal year.

The industry's demands will need to be backed up with justifications, which the finance ministry may include in the budget if they find merit in them, the ministry said.

Industry stakeholders must submit suggestions for tweaks in the duty structure, rates and broadening of tax base on both direct and indirect taxes by November 5. The Union Budget for the next fiscal year starting April will likely be tabled in the parliament on February 1 of next year.


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

As for indirect taxes, the request for correcting inverted duty structure for any commodity should be supported by value addition at each stage of manufacturing.

Industry stakeholders have also been asked to submit suggestions on easing compliance burden, providing tax certainty and reducing litigation.

(with inputs from PTI)