Budget 2025: Industry bodies urge Nirmala Sitharaman to slash income tax rates for middle class at pre-budget meeting
Industry body representatives from CII, FICCI, PHDCCI, and Assocham were among others to attend the pre-budget meeting on Monday, December 30. The Union Budget is scheduled to be presented on Feburary 1, 2025.
India's industry body representatives were seeking a reduction in personal income tax rates from the Finance Minister at the pre-budget meeting on Monday to ensure higher disposable income in the hands of the nation's middle-class population, reported the news agency PTI on December 30.
“From a perspective of boosting consumption, we have suggested that there be some relief provided to income tax up to a ₹20 lakh on the marginal income tax rate so that it boosts consumption, there is more disposable income and in turn also leads to buoyancy in revenues,” Sanjiv Puri, the Chairman of Confederation of Indian Industries (CII) told the news agency.
Along with income tax, the representatives urged Nirmala Sitharaman to reduce the excise duty on fuel and take measures to provide impetus to employment-intensive sectors, as per the news report.
“We have also suggested that excise on petroleum be reduced a little, that will also provide higher disposable income and contribute to a virtuous cycle in the hands of the consumers,” said Puri, cited the news agency.
The Union Budget for the year 2025-26 is set to be presented on February 1.
Industry bodies also raised concerns about China dumping excess commodities globally, including in India, which risks food security and inflation due to the “climate emergency,” reported the agency.
“We are seeing dumping of a lot of products (by China) into various parts of the world, including India. We also have the issue of climate emergency, which, besides other things, also impacts food and nutrition, (food) security and inflation. In this context, we have made several suggestions and ideas,” he said, as per the report.
CCI Chairman Sanjiv Puri told the news agency that even though the Indian economy is doing well, there are many challenges globally.
Apart from Nirmala Sitharaman, the pre-budget meeting was attended by the finance secretary, the secretary of the Department of Investment and Public Asset Management, and the Chief Economic Adviser to the Government of India, among others.
“Finance Minister and her colleagues gave a very patient hearing to the industry today. There were about 13 people from different industry chambers. There was some commonality of themes across some of the representations, basically the temporary slowdown faced due to dumping products especially by some our neighbours like China due to the slowdown in their economy,” said Vijay Sankar, vice president of FICCI, cited the news portal.
Other industry body members like Hemant Jain, the president of PHD Chamber of Commerce and Industry (PHDCCI), and Sanjay Nayar, the president of the Associated Chambers of Commerce and Industry of India (Assocham), also attended the pre-budget meeting.
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Business NewsBudgetBudget ExpectationsBudget 2025: Industry bodies urge Nirmala Sitharaman to slash income tax rates for middle class at pre-budget meeting
First Published:30 Dec 2024, 10:36 PM IST
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