The PHDCCI delegation has presented the pre Budget memorandum to Finance Minister Nirmala Sitharaman.
New Delhi: PHD Chamber of Commerce and Industry (PHDCCI) has interacted Finance Minister Nirmala Sitharaman over the pre Budget suggestions 2024-25, during which the industry body has made strong points on the personal tax front for the common man.
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Will Middle Class Be Spared From 30% Tax Rate?
Among several recommendations, the PHDCCI has urged FM to spare the middle class of the 30 percent tax rate.
“The middle class must be spared from the 30 per cent tax rate and this rate must be applicable only to those with taxable income above Rs. 40 lakh, this will support consumption demand in this country”, Sanjeev Agrawal, President PHDCCI said.
He also added that the government should maintain status quo on the corporate tax rate at 22 percent for existing companies and 15 percent for new manufacturing companies incorporated after October 1, 2019 to enhance the manufacturing share in GDP.
As per the new tax regime, the following is the income tax slab for individual tax payers:
The New Tax Slabs-
Income Slabs Tax Rates
Upto Rs 3 Lakh NIL
Rs 3 Lakh- Rs 6 Lakh 5%
Rs 6 Lakh- Rs 9 Lakh 10%
Rs 9 Lakh- Rs 12 Lakh 15%
Rs 12 Lakh- Rs 15 Lakh 20%
Above Rs 15 Lakh 30%
On February 1 this year, Finance Minister Nirmala Sitharaman unveiled the Interim Budget in Parliament during which announced no changes in the income tax slab.
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The Industry body has suggested 10 reforms
1. Further reforms to enhance the manufacturing share in GDP to 25% by 2030.
2. Expand the PLI scheme beyond the 14 sectors with addition of more labour intensive sectors.
3. Change in Classification Norms of MSMEs for NPAs from the 90 days limit to 180 days.
4. Rationalization of direct taxes for the middle class.
5. Focus more on tier 2 and 3 cities with state of the art infrastructure and smart villages with adequate facilitation of public utilities.
6. Status quo on the corporate tax rates.
7. Strengthen University-Industry Linkages to enhance R&D activity in the country.
8. Reduce costs of doing business including costs of capital, costs of power, costs of logistics, costs of land and costs of compliances.
9. Implement the four labour codes across the states to enhance the competitiveness of the industry.
10. Strengthen supply chains and address the shortages in key food items to mitigate inflationary pressures.
