CII's Bold Budget Proposal: Fuel Duty Cuts and Income Tax Reforms

The Confederation of Indian Industry (CII) recommends lowering excise duty on fuel to curb inflation and suggests tax reforms to boost consumption for the 2025-26 budget. CII highlights the disparity between personal and corporate tax rates, advocating for measures like increased payouts in schemes like MGNREGS and PM-KISAN.

The Confederation of Indian Industry (CII) has proposed strategic budget measures aimed at stimulating India's economy, emphasizing the need to lower excise duty on fuel. This reduction is believed to alleviate inflation and enhance purchasing power, particularly for lower-income groups, driving up consumption levels.

Furthermore, CII has highlighted an urgent disparity: the highest marginal tax rate for individuals at 42.74% far surpasses the corporate rate at 25.17%. To address this, CII suggests reducing personal income tax rates for earnings up to Rs 20 lakh, fostering a consumption-led economic surge.

Additional propositions include increasing funding for rural and agricultural programs such as MGNREGS and PM-KISAN, introducing consumption vouchers designed for low-income groups, as well as adjusting unit costs in housing schemes. These strategies aim to boost rural economic recovery and sustain overall growth momentum.

(With inputs from agencies.)