Industry body PHD Chamber Sunday said it expects further reforms in agriculture sector and rationalisation of direct taxes in the forthcoming interim Budget. “The last five budgets of the present government have focused on each and every segment of the economy. Going ahead, we look forward to continuation of the dynamic reforms in the forthcoming budget also,” PHD Chamber said in a statement. The last Budget of the government is expected to be presented before the Parliament on February 1.
Consistent indirect tax revenue growth along with reduction in GST rates by the government indicates that the tax base is widening and economic activity is rapidly expanding in India, it said. At this juncture, the economy needs further bold measures to boost the investment environment and to trigger demand growth to the next level, it added. Time has come to rationalise the direct taxes starting from reduction in Corporate Tax to a level of 25 per cent for all corporate tax payers, without any turnover criteria, it said, adding that this will provide a boost to economic growth and would result in widening of the Direct Tax net, enhance collections and promote compliance further.
It also suggested that income up to Rs 3.5 lakh should be considered for tax exemption, instead of the present Rs 2.5 lakh and the maximum personal income tax rate should be towards 25 per cent to increase the personal disposable income which will boost demand in the economy. The maximum marginal slab should also be raised to Rs 15 lakh instead of Rs 10 lakh.