Upcoming budget should focus on private investments, consumption & employment creation

The PHD Chamber of Commerce and Industry give suggestions on Direct and Indirect taxes, GST, private investments and much more to include in the union budget 2023-24.

   
Union Budget 2023-24

The Union Budget 2023-24 will be presented at a crucial juncture of geo-political uncertainties, high inflation and slowing world economic growth and calibrated steps to enhance domestic sources of growth would be crucial to maintain the steady economic growth trajectory, Saket Dalmia, President, PHD Chamber of Commerce and Industry has said.

In its interaction with Revenue Secretary, the industry body suggested measures related to direct taxes and indirect taxes for the growth and development of the Indian economy.

Its suggestions on direct taxes included taxing real income and not notional income, support to industries which suffered majorly because of Covid-19, measures to increase revenue and widen the tax net, enhancing presumptive tax, boost to infrastructure and suggestions for ease of business promoting compliance and boost to the economy.

In the indirect taxes category, PHD Chamber of Commerce and Industry suggested that GST, as envisaged as Good and Services Tax, needs continuous improvisation and broad policy changes from time to time to provide the overall objective of ease of business to trade and industry.

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Certain highlighted suggestions are rationalisation of multiple GST rates into 2-3 Tier GST rates, decriminalisation of offences in GST law by increasing threshold from Rs 5 crore to Rs 20 crore and should be prosecuted based on fraud intent only, a release said.

PHD Chamber of Commerce and Industry has also suggested a five-pronged strategy to revitalise private investments which included enhancing consumption, increasing capacity utilisation in the factories, creating employment, enhancing the quality of social infrastructure and strengthening economic growth.

This will not only enhance the aggregate demand in the economy but also attract private investments, increase capacity utilisation of the firms and create enormous employment opportunities in the economy, said Dalmia.

The industry body also suggested reducing the costs of doing business that includes costs of capital, costs of power, costs of logistics, costs of land and availability of land and costs of labour, availability of skilled labour and costs of compliance should not be more than the Top 3 manufacturing countries namely China, the US and Japan.

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For employment creation, the industry body suggested further reforms in the Agri and food processing sector with a great infusion of public investments in the agriculture infrastructure. Reforms in rural infrastructure logistics and a cold chain are required as they would help in increasing the level of the food processing industry and rural entrepreneurship. This would lead to increased participation in global agriculture and food exports, the release said.

Exports of Agri and food processing products should be increased to the level of US$ 100 billion in the next three years from the current level of around US$ 50 billion (2021-22), it said.

“Tourism sector is providing employment to all sections of society. In India, the majority of the travel and tourism industry is composed of MSMEs. In this regard, the development of tourism infrastructure is of paramount importance and should be supported with adequate resources for the development of tourism infrastructure in the country,” Dalmia said.