New Delhi [India], December 24 : With the union budget 2025-26 slated for February 1, 2025 suggestions from various sectors and industry bodies are coming to the finance ministry.
Industry body PHD Chamber of Commerce and Industry wants a slew of reform measures in the budget, which includes tax reforms for individuals and Limited Liability Partnership (LLP) firms, expansion of the Production Linked Incentive (PLI) scheme, and revisions to MSME classification norms among others.
The industry body wants a cut in tax rates for Individuals and Limited Liability Partnership firms and fast-tracking of faceless appeals by introducing a statutory period.
It suggested an increase in the limit of the presumptive tax scheme for professionals, PLI scheme beyond the current 14 sectors; change in classification norms of MSMEs for NPAs and interest equalisation scheme on pre and post-shipment export credit for MSMEs services exports.
PHDCCI wants the government to increase the capex from Rs 11.11 lakh crore to at least Rs 13 lakh crore and the size of budget from Rs 48.2 lakh crore to over Rs 51 lakh crore.
In line with the 25 per cent corporate tax the peak rules must also be reduced for Partnership Individuals and Limited Liability Partnership firms at the same level. The Industry body also wants the government to abolish the security transaction tax (STT).
"The long-term capital gains on listed shares have increased from 10 per cent to 12.5 per cent 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," the document added.
The government should encourage manufacturing so that it becomes 25 per cent of GDP by 2030 from the current 16 per cent now.
PLI scheme should include medicinal plants, handicrafts, leather and footwear, gems and jewellery and the space sector, among others.
The industry body wants a change in the Classification Norms of MSMEs for NPAs and a restructuring Scheme for MSMEs approved by RBI, from the 90-day limit for classifying over dues of MSMEs to 180 days.
The 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 a maximum of 45 days, if there is no specified payment date in the purchase order.
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