BUSINESS

Finance Ministry invites suggestions on tax rates

With preparations for the next Union Budget picking up pace, the Finance Ministry has invited suggestions from trade and industry for changes in tax rates and broadening of base.

The Budget is to be presented at the end of February by the Finance Minister.

“In the context of formulating the proposals for the Union Budget of 2016-17, the Ministry of Finance would like to be benefited by the suggestions and views of your Association, said an official statement. “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,” it said in a communication to the trade and industry bodies. The suggestions and views, it added “may be supplemented and justified” by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support the 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,” the ministry said, adding that it would not be feasible to examine suggestions that are either not clearly explained or which are not supported by justification/ statistics. As regards direct taxes, it said that while forwarding proposals, “please take into consideration” the announcement made in Budget 2015-16 to reduce the rate of Corporate Tax from 30 per cent to 25 per cent over the next 4 years along with rationalisation and removal of various kinds of tax exemptions and incentives. The Ministry said the proposals should be sent by October 25. In run-up to the budget, the centre holds talks with various stakeholders such as trade unions, economists, industry representatives and social sector activists. — PTI



The proposals should be sent by October 25.



Recommended for you