The Ministry of Finance’s Tax Research Unit has requested suggestions from Trade and Industry Associations for the Union Budget 2026-27, focusing on changes to direct and indirect taxes. Associations are asked to submit proposals for adjustments to duty structure, rates, and tax base broadening, supported by economic justification and statistical data. Required statistics include information on production, prices, and the revenue implications of the suggested changes. Specifically, requests to correct inverted duty structures must detail value addition at each manufacturing stage. For direct taxes, proposals should align with the government’s medium-term policy of phasing out incentives, deductions, and exemptions while rationalizing rates, and should quantify any positive externalities. Suggestions are also welcome for reducing compliances, providing tax certainty, and lowering litigations. Importantly, GST-related requests will not be examined as part of this annual budget process. Proposals for Customs and Central Excise (for non-GST commodities) and Direct Taxes must be emailed to specified addresses as separate Word document attachments, with hard copies sent to the respective Joint Secretaries, and should reach the Ministry by November 10th, 2025.
F. No.334/10/2025-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Room No.146-G, North Block
New Delhi, dated 27th October, 2025
To,
Trade and Industry Associations
Subject: Suggestions from the Industry and Trade Associations for Budget 2026-27 regarding changes in direct and indirect taxes.
Sir/Madam,
In the context of formulating the proposals for the Union Budget of 2026-27, the Ministry of Finance would like to be benefited by the suggestions and views of your Association. You may like to send your 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.
2. Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support your proposal. The request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggestions that are either not clearly explained or which are not supported by adequate justification / statistics.
3. As can be seen that the Government policy with reference to direct taxes in the medium term is to phase out tax incentives, deductions and exemptions while simultaneously rationalising the rates of tax. It would be also desirable that while forwarding the suggestions/ recommendations, positive externalities arising out of the said recommendations and their quantification are also indicated. You may also like to give your suggestions for reducing compliances, for providing tax certainty and reducing litigations. The Synopsis of your suggestions could be given in the following format:
| S.No. | Issue | Justification |
4. It may be noted that GST related requests are not examined as part of Annual Budget. Suggestions related to Customs and Central Excise may be forwarded in the following format:
| S. No. | Request | Existing rate of duty | Requested rate of duty | Justification |
Additionally, the relevant information as prescribed in the Annexure-A enclosed herewith, may be provided.
5. Your suggestions and views may be emailed, as word document in the form of separate attachments, in respect of Indirect Taxes [Customs and Central Excise (for commodities outside GST)] to budget-cbec@nic.in and Direct Taxes to ustpl3@nic.in. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be addressed to Shri Gaurav Singh, Joint Secretary (TRU-I), CBIC, while the suggestions relating to Direct Taxes may be addressed to Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT. It would be appreciated if your views and suggestions reach us by the 10th November, 2025.
Yours sincerely,
Ananya Kumar Singh
Budget Officer, Tax Research Unit,
Dept. of Revenue
Tel: 011-2309 5543
ANNEXURE -A
| S. No | HS Code | Description of the Product |
Quantum of Imports 2021-22 to 2025-26 (year wise) | CIF value of imports 2021-22 to 2025- 26 (year wise) | Quantum of domestic production 2021-22 to 2025-26 (year
wise) |
Value of domestic production 2021-22 to 2025-26 (year wise) | Unit Price
(CIF) |
Existing Duty | Proposed Duty | Revenue implication of the proposal | Implicationsm of the proposal for the domestic industry |
