Budget 2025: FICCI members for review of tax structure to spur demand, boost growth
Budget 2025: Ahead of the Budget, a majority of the members surveyed by FICCI favoured review of the direct tax structure with a view to spur demand and boost growth. A re-look at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy, FICCI said.
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Budget 2025: Ahead of the Budget, a majority of the members surveyed by FICCI favoured review of the direct tax structure with a view to spur demand and boost growth. A re-look at the slabs and the tax rates is warranted as this could leave more money in the hands of people and spur consumption demand in the economy, FICCI said.
The current round of FICCI's Pre-budget 2025-26 survey was conducted between late December 2024 and mid-January 2025. The survey drew responses from over 150 companies spanning across diverse sectors, offering a comprehensive insight into India Inc's sentiments amid moderating economic growth.
The surveyed members expect that the country's GDP growth will be 6.5-6.9 per cent in 2025-26 financial year beginning March.
Respondents also called for a strong policy push on simplifying the tax regime, incentivizing the development of green technologies/renewables and EVs, and easing compliances through digitization.
On the taxation front, providing tax certainty, addressing custom duty inversion, and rationalization of TDS provisions were highlighted as important themes by the participants.
The participants also showed support for an amnesty scheme under customs, with 54 per cent favouring its introduction to enable swift resolution of disputes.
According to the survey, the government's commitment to fiscal consolidation has put the country in good stead as the participants expect the government to remain on that course.
About 47 per cent of participants expected the government to meet the fiscal deficit target of 4.9 per cent for FY 2024-25 and another 24 per cent reporting that the government could improve and report a lower fiscal deficit number for the current year.
Besides, a majority of respondents highlighted the need for sustaining public capital expenditure, with 68 per cent calling for a thrust on capex to sustain the growth momentum.
At least a 15 per cent increase in capex allocation for FY 2025-26 is being looked forward to by members of Indian industry. Additionally, over half of the respondents emphasized the importance of reforms to further enhance the ease of doing business. Reforms pertaining to factors of production - particularly in areas like land acquisition, labour regulations, and power supply – remain important.
The Union Budget 2025-26, to be presented on February 1, will be the first full budget of the Modi 3.0 government.
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