PR No – 11
7th November, 2024
New Delhi
PHDCCI delegation interacts with Shri Sanjay Malhotra, Revenue Secretary and his team on Pre-Budget Memorandum for 2025-26
Industry body suggests reduction in rates of taxation for Individuals and Limited Liability Partnership firms at 25%
PHDCCI expects more than Rs 51 lakh crore Union Budget for 2025-26 and capital expenditure at more than Rs 13 lakh crore
PHDCCI in its interaction with Shri Sanjay Malhotra, Revenue Secretary and officials of Department of Revenue, Ministry of Finance, Government of India, submitted suggestions related to reduction in rates of taxation for Individuals and Limited Liability Partnership firms, fast tracking of faceless appeals by introducing statutory period; increase in the limit of presumptive tax scheme for professionals; expansion of the PLI scheme beyond the 14 sectors; change in classification norms of MSMEs for NPAs and interest equalization scheme on pre and post shipment export credit for MSMEs services exports.
PHDCCI expects a significant increase in the size of Union Budget from Rs 48.2 lakh crore for the year 2024-25 to more than Rs 51 lakh crore for the year 2025-26 and continued capital expenditure expansion from Rs 11.11 lakh crore for the year 2024-25 to more than Rs 13 lakh crore for the year 2025-26, said Mr Hemant Jain, President, PHDCCI.
The corporate tax rates have been reduced to 25% including surcharge by amendment made in September 2019. Thus, the peak rules must also be reduced for Partnership Individuals and Limited Liability Partnership firms at 25%, said Mr Hemant Jain.
We suggest fast tracking of Faceless Appeals by introducing statutory Period within which appeal order has to be passed in allowing option of physical CIT(A) in exceptional cases, said Mr Hemant Jain.
The long term capital gains on listed shares has increased from 10% to 12.5% and making it at par with long term capital gain on other assets. Now, since the long term capital gain on shares is at parity with long term capital gain on other assets, it is requested that the security transaction tax may be abolished, he said.
Industry body suggests promoting Make in India and to make Indian products competitive along with review of Free Trade Agreements, and streamlining and automation of procedure to achieve enhanced ease of doing business in the country.
Industry body suggests further reforms to enhance the manufacturing share in GDP to 25% of GDP by 2030 from the current level of 16% of GDP. Further, reforms focus more to reduce costs of doing business including costs of capital, costs of power, costs of logistics, costs of land and costs of compliances, said Mr Hemant Jain.
PHDCCI suggested to expand the PLI scheme beyond the 14 sectors to include medicinal plants, handicrafts, leather and footwear, gems and jewellery and space sector, among others.
Mr Jain suggested to change in Classification Norms of MSMEs for NPAs and restructuring Scheme for MSMEs approved by RBI, from the 90 days limit for classifying over dues of MSMEs to 180 days.
The Interest Equalization Scheme on Pre and Post Shipment Export Credit is for the MSME manufacturer and merchant exporters only as eligible beneficiaries for interest subvention. The MSME services exporters will also be considered for Interest Equalization Scheme, said Mr Hemant Jain.
The industry body says that MSE Facilitation Councils should cover Medium Enterprises as only Micro and Small Enterprises can refer their delayed payments to the MSE Facilitation Councils, for settlement of delayed payments from the buyers with the provision of payments within maximum of 45 days, if there is no specified payment date in the purchase order.
The delegation, comprising Mr Hemant Jain, President; Mr. Mukul Bagla, Chairman, Direct Tax Committee; Mr Pramod Kumar Rai, Chairman, Indirect Taxes Committee; Dr Ranjeet Mehta, CEO & Secretary General; Dr S P Sharma, Chief Economist | Deputy Secretary General and Mr Nanda Mishra, Joint Secretary, PHDCCI, presented the Pre Budget Memorandum to the Department of Revenue, Ministry of Finance, Government of India.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry