Business Leaders Advocate for Comprehensive Tax Reforms Ahead of India's Budget 2025-26

Ahead of India's Union Budget 2025-26 presentation, a FICCI survey reveals a major demand for revisiting direct tax structures to enhance consumption and economic growth. Participants emphasize the need for clear tax policies, support for green technologies, public capital expenditure, and reforms for ease of business.

In anticipation of India's Union Budget 2025-26, industry leaders have strongly advocated for a comprehensive review of the direct tax framework. The Federation of Indian Chambers of Commerce & Industry (FICCI) survey showed a majority supporting changes to tax slabs and rates to increase consumer demand and spur growth.

The survey, which gathered insights from over 150 diverse sector companies between December and January, underscores a hopeful sentiment toward the Indian economy, projecting a GDP growth of 6.5-6.9% in the next financial year. Participants urged a strong policy focus on simplifying tax regimes, supporting green technology development, incentivizing renewables, and modernizing compliance through digitization.

Moreover, the survey highlighted a call for addressing issues such as tax certainty, custom duty inversion, and rationalizing TDS provisions. An amnesty scheme under customs gained support, with over half the participants in favor. Additionally, sustaining public capital expenditure and implementing reforms for doing business remain key points of interest, with a projected 15% increase in capital expenditure allocation anticipated.

(With inputs from agencies.)