India Inc urges FM to reduce tax burden, earmark more for capex in upcoming Budget

New Delhi: India Inc on Thursday asked Finance Minister Nirmala Sitharaman to reduce tax burden on common man, continue capital expenditure, and announce steps to contain food inflation in the upcoming Union Budget.

During pre-Budget consultation with Sitharaman, the industry leaders and associations also urged the government to focus more on infrastructure development with a view to maintaining the economic growth momentum.

The industry leaders also laid stress on boosting the MSME (Micro, small, and medium enterprises) sector, considered a backbone of the Indian economy and main employment generator.

President of industry body CII Sanjiv Puri put forth eight points for consideration for the finance minister.

These include relief in income tax at the lower end of income slabs, streamlining of employment inked incentive schemes like Production Linked Incentive (PLI), and promoting ease of doing business. CII also made recommendations for agriculture and rural development.

Recommendations of Ficci centred around capex drive, innovation and tax simplification.

During the meeting, Subhrakant Panda, former Ficci president, made a case for supporting growth momentum by energising demand, laying thrust on infrastructure development, taking further measures to rein in food inflation, supporting MSMEs and prioritising innovation and research and development in the country.

“The Union Budget, being the first major public policy announcement of the government, is expected to set the tone for the next five years in terms of policy direction,” Panda noted.

Sanjay Kirloskar (CMD of Kirloskar Brothers), Arathi Krishna (MD of Sundram Fasteners), Vinod Aggarwal (President at SIAM), Neeraj Akhoury (President at Cement Mfrs Association), Sanjay Aggarwal (President at PHD Chamber), Samir Somaiya (President at IMC Chamber), Shefali Misra (Vice President at Biocon), and Yash Pal Sachar (Vice President at Ashok Leyland) also made several key recommendations to the minister for consideration in the Budget.

The full Budget 2024-25 is expected to be presented in Parliament next month.

Vivek Jalan, Chairman of National Fiscal Affairs and Taxation Committee of the Bengal Chamber of Commerce and Industry, suggested easing of licensing requirements for imports of electronics.