Industry Calls for Sweeping Budget Reforms Ahead of 2025-26 Union Budget

The PHD Chamber of Commerce and Industry is urging the government to introduce significant reforms in the 2025-26 Union Budget. Key proposals include tax reforms for individuals and LLPs, PLI scheme expansion, and updated MSME norms. The industry body is also advocating increased capital expenditure and the abolition of the security transaction tax.

The countdown to the 2025-26 Union Budget has inspired a flurry of suggestions from various industry sectors, with the PHD Chamber of Commerce and Industry leading the charge. The industry body has presented a comprehensive reform agenda to the finance ministry, highlighting key areas that require immediate attention.

One of the primary demands is a reduction in tax rates for individuals and Limited Liability Partnerships (LLPs), and the swift progression of faceless appeals through the introduction of a statutory period. The PHDCCI also recommends expanding the Production Linked Incentive (PLI) scheme beyond the existing 14 sectors.

The PHDCCI is urging a significant boost in capital expenditure, proposing an increase from Rs 11.11 lakh crore to Rs 13 lakh crore. In tandem, they call for a budget expansion from Rs 48.2 lakh crore to over Rs 51 lakh crore. To align with corporate tax rates, the body advocates for reduced tax rules for partnerships and LLPs, alongside the abolition of the security transaction tax (STT). Furthermore, the expansion of the PLI scheme to include sectors such as medicinal plants and gems and jewelry is on the agenda.

(With inputs from agencies.)