Finance Minister Holds Pre-Budget Consultations With Industry Leaders

New Delhi, Jun 21 (KNN) Finance Minister Nirmala Sitharaman conducted pre-Budget consultations with industry representatives on Thursday, gathering input on various economic measures and policy reforms.

Industry leaders proposed several key ideas, including tax relief for middle-income earners to stimulate consumption, reconsideration of the 45-day payment deadline for micro and small enterprises, restructuring of Goods and Services Tax (GST) rates, and measures to promote exports and simplify IT imports.

The Finance Minister also met with financial sector representatives, including venture capital (VC) providers.

These stakeholders proposed allowing pension and insurance funds to invest in alternative assets, expanding the angel tax exemption list to include registered foreign VC investors, and reviewing the Competition Commission of India's definition of 'control' as it pertains to private equity investors with minority stakes.

Associated Chambers of Commerce and Industry of India (ASSOCHAM) recommended raising the basic income tax exemption limit from Rs 3 lakh to 5 lakh and doubling the standard deduction to Rs1 lakh.

The organisation argued that such measures would boost consumption without significantly impacting government finances.

The Bengal Chamber of Commerce (BCC) highlighted concerns about recent changes to the Income Tax Act mandating payments to small and medium enterprises (SMEs) within 45 days.

The chamber suggested aligning this requirement with the Central GST Act's 180-day payment limit and extending its scope to include medium-sized firms.

Additionally, the BCC raised issues regarding the import of laptops, which now requires multiple approvals and an import license.

The chamber cautioned that such non-tariff barriers could lead to scarcity and increased prices, urging reconsideration of these measures until India achieves self-sufficiency in electronics production.

These consultations are part of the government's efforts to gather stakeholder input ahead of the upcoming Union Budget.

The diverse range of proposals reflects the complex economic landscape and varied interests of different sectors as India seeks to stimulate growth and address economic challenges.

(KNN Bureau)