India's Finance Ministry Invites Suggestions On Tax Proposals For Budget 2023, Last Date Is November 05

Nearly a week after kickstarting the Union Budget 2023¡¯s preparations on October 10th, the Finance Ministry has now sought suggestions from trade and industry on tax proposals for the Budget of Fiscal Year 2023¨C24. The budget for the next financial year is likely to be presented on February 1st, 2023.

The month-long budget related meetings amidst the Finance Ministry are expected to end next month on November 10th.

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Suggestions For Tax Proposals

Suggestions can be given for Direct Taxes (Personal Income Tax and Corporate Income Tax), Central Excise and Customs Duty. GST (Goods & Services Tax)-related proposals are not examined as part of the budget exercise, a letter sent to the Trade and Industry Association said, as per TheHinduBusinessLine report.

"Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implications of the changes suggested, and any other information to support your proposal," the letter mentioned. For example, a request for correction of the inverted duty structure (higher duty on inputs and lower duty on output) should necessarily be supported by value addition at each stage of commodity manufacturing.

"It would not be feasible to examine suggestions that are either not clearly explained or which are not supported by adequate justifications or statistics," the letter said.

Talking about direct taxes, the letter reiterated that the medium-term effort is to phase out tax incentives, deductions, and exemptions while simultaneously rationalising tax rates. "You may also like to give your suggestions for reducing compliance, providing tax certainty and reducing litigation," the letter mentioned.

The tax-related suggestions can be sent by November 5th, 2022..

Also Read: Median 10% Hike Expected In 2023 For Salaried Employees In India

What Finance Minister Sitharaman Said About Budget 2023

nirmala sitharaman/twitter

Last week, during her visit to Washington DC to attend the annual meetings of the IMF and World Bank, India¡¯s Finance Minister responded to a question on the next year's budget at a fire-side chat with eminent economist Eshwar Prasad at the prestigious Brookings Institute.

Sitharaman said that 2023¡¯s budget will be "very carefully structured" to help the economy sustain growth momentum and rein in prices.

She identified high energy prices as among the biggest problems facing the Indian economy in the near future. "Specifics (of the next budget) may be difficult at this stage because it's a bit too early. But broadly, the growth priorities will be kept absolutely on top, even as I speak about the concerns that inflation brings before me. So, inflation concerns will have to be addressed. But then how would you manage growth would be the natural question," FM Sitharaman said, as per a PTI report.

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