- By Aditya Pratap Singh
- Fri, 14 Jun 2024 03:30 PM (IST)
- Source:PTI
Budget 2024: The Ministry of Finance has asked trade and industry associations to submit proposals on direct and indirect taxes and changes in laws to reduce compliance with the 2024-2025 budget. The proposals are due to be submitted to the ministry by June 17, and the full budget for 2024-2025 is expected to be presented to Parliament in the second half of July.
The proposals could include changes in the structure and rates of taxes and ideas on expanding the tax base on both direct and indirect taxes, with an economic justification for this, according to the ministry.
For changes in customs and excise duties, trade and industry must substantiate and justify their request with relevant statistical information on production, prices, and the impact of the proposed changes on revenues. The request to correct the inverted tax structure must be supported by the added value at each stage of the manufacture of the good.
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Regarding direct taxes, the ministry said the proposals could also relate to reducing compliance, providing tax certainty, and reducing litigation. The ministry said that the government's medium-term policy is to gradually phase out incentives, deductions, and tax exemptions while rationalizing tax rates.
After forming the government, the first budget of the Modi 3.0 government will be introduced in parliament. In the recently concluded general election, Bharatiya Janata Party emerged as the single-largest party with 240 seats out of 543. However, it failed to pass the majority mark of 272, like the previous two general elections- 2014 and 2019. The National Democratic Alliance led by the Bharatiya Janata Party bagged 293 seats, which is above the majority mark.
As Narendra Modi returned as Prime Minister for the third straight time, most of the previous development projects are likely to be continued. The return of Modi has also boosted the stock market, as it recovered from the loss on election result day and is currently trading at around a new all-time high mark.