Financial Sector Calls for Tax Breaks and Green Finance Incentives in Upcoming Budget

The financial sector, including banks, advocated for tax incentives in the upcoming Budget to encourage savings in fixed deposits and enhance capital market efficiency. The pre-Budget meeting, chaired by Finance Minister Nirmala Sitharaman, also discussed incentivizing long-term savings and providing a refinance window for green finance.

On Thursday, the financial sector, notably banks, urged the government to introduce tax incentives in the forthcoming Budget to bolster fixed deposit savings, which have recently declined. These suggestions were part of a pre-Budget meeting with Finance Minister Nirmala Sitharaman.

At the meeting, Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, emphasized improving capital market efficiency and increasing market inclusion. Recommendations were also made to stimulate long-term savings in both debt and equity.

The NBFC sector, represented by FIDC director Raman Aggarwal, called for a refinance window for green finance and electric vehicles, proposing a fund akin to those for MSMEs and small borrowers. Additionally, adjustments to the SARFAESI Act and tax reforms were discussed to support sectoral growth.

(With inputs from agencies.)