Budget 2023 Expectations: 'Consumption expenditure rebate must be enhanced to Rs 5 lakh per annum'

Union Budget 2023-24 Expectations: To enhance the consumption in the economy, there is a need to increase the tax rebate benefits for consumption expenditure, Saket Dalmia, President, PHD Chamber of Commerce and Industry, suggested amid Finance Minister Nirmala Sitharaman kicking off pre-budget consultations and holding meetings with industry chamber heads and infrastructure experts about their expectations from the upcoming Budget 2023.

Budget 2023 Expectations: Tax Rebate

"Tax rebate on purchase of self-occupied house is given Rs 2 lakh only since the last many years. This needs to be enhanced with the wider scope of consumption expenditure such as purchase of more than 1 house, purchase of car, along with other durables," Saket Dalmia suggested.

Consumption expenditure rebate must be enhanced to Rs. 5 lakh per annum

"Consumption expenditure rebate must be enhanced to Rs. 5 lakh per annum. This will not only enhance the aggregate demand in the economy but also attract private investments, increase capacity utilization of the firms and create enormous employment opportunities in the economy," Dalmia added.

Earlier, PHD Chamber of Commerce and Industry (PHDCCI) had suggested a 5-pronged strategy to revitalize private investments including 

1) Enhance consumption 

2) Increase capacity utilization in the factories

3) Create employment 

4) Enhance the quality of social infrastructure 

5) Strengthen economic growth

Union Budget 2023-24 will be presented in Parliament by the Finance Minister on February 1.