The Confederation of Indian Industry (CII) has suggested a cut in personal income tax rates to revive demand — a move which would benefit 5.83 crore taxpayers who have filed returns for assessment year 2022-23.
The industry body gave this suggestion to Finance Minister Nirmala Sitharaman on Monday, during the pre-budget meeting, which she held with industry chambers.
CII further suggested reducing the highest 28 per cent GST slab on consumer durables.
Further the industry body also suggested to the Finance Minister that GST should be decriminalised.
In a memorandum to the government, the CII advocated that there are penal provisions in place to deter tax evasion in the GST law.
The CII also recommended subsidy rationalising for fuel and fertilisers to cut non-priority expenditure.
It further advised that the government should increase spending from the current 2.9 per cent of the GDP to 3.3-3.4 per cent in 2023-24.
The industry body also recommended an escalation in capital spending by the government to 3.8-3.9 per cent by FY25.
Speeding up of PSU privatisation process in the next fiscal to meet the divestment targets was also recommended by the industry chamber to the finance minister.
Coming up with a roadmap to bring down fiscal deficit to 6 per cent of GDP in FY24 was also proposed by the CII.
This was the first in a series of consultations which Sitharaman would be holding in the next one week, as part of budgetary preparations.
The meeting was also attended by junior finance ministers Pankaj Chaudhary and Bhagwat Karad, Finance Secretary T.V. Somanathan and secretaries from departments of economic affairs, revenue, financial services and public asset management.
Chief economic adviser V. Anantha Nageswaran was also present in the meeting.