A delegation of PHD Chamber of Commerce and Industry (PHDCCI) met the officials of the Finance Ministry on Thursday.
In its interaction with Sanjay Malhotra, Revenue Secretary and officials of Department of Revenue, Ministry of Finance, PHDCCI 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.
It also suggested the 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 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%,” he added.
“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, PHDCCI President said.
Industry body also suggested 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.
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.
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.
