Ministry of Finance, Government of India, is inviting suggestions from Trade and Industry Associations for the Union Budget 2024-25 regarding changes in direct and indirect taxes. Associations are encouraged to propose changes in the duty structure, rates, and tax base, providing economic justifications supported by relevant statistical data about production, prices, and revenue implications. The government aims to phase out tax incentives and exemptions while rationalizing tax rates, and seeks suggestions that highlight positive externalities, reduce compliance burdens, ensure tax certainty, and minimize litigation. Proposals must be well-explained and supported by adequate statistics, especially for correcting inverted duty structures, which require details of value addition at each manufacturing stage.
Submissions for GST-related requests are excluded from this process. Customs and Central Excise suggestions should follow a specific format provided by the Ministry. Associations should email their proposals in word document format to designated addresses for Indirect Taxes and Direct Taxes, with hard copies addressed to specified officials in CBIC and CBDT. The detailed information required includes imports and domestic production data for 2021-22 to 2023-24, covering HS Code, product description, CIF value, existing and proposed duties, and the revenue implications and impact on the domestic industry. All suggestions should be submitted by June 17, 2024.
F.No.334/1/2024-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Room No.156 North Block
New Delhi, dated 12th June, 2024
To,
Trade and Industry Associations
Subject: Suggestions from the Industry and Trade Associations for Budget 2024-25 regarding changes in direct and indirect taxes.
Sir/Madam,
In the context of formulating the proposals for the Union Budget of 2024-25, 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 [email protected] and Direct Taxes to [email protected]. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be addressed to Ms. Limatula Yaden, Joint Secretary (TRU-I), CBIC, while the suggestions relating to Direct Taxes may be addressed to Shri Raman Chopra, Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT. It would be appreciated if your views and suggestions reach us by the 17th June, 2024.
Yours sincerely,
Vinay V Nayak
Budget Officer, Tax Research Unit,
Dept. of Revenue
Tel: 011-2309 5559
ANNEXURE -A
| S. No | HS Code | Description of the Product |
Quantum of Imports 2021-22 to 2023-24 (year wise) | CIF value of imports 2021-22 to 2023- 24 (year wise) | Quantum of domestic production 2021-22 to 2023-24 (year wise) | Value of domestic production 2021-22 to 2023-24 (year wise) |
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| Unit Price (CIF) | Existing Duty | Proposed Duty | Revenue implication of the proposal | Implications of the proposal for the domestic industry |
