Deloitte Partner Highlights Key Budget Priorities for Tax Reform and Manufacturing
Deloitte India Partner Saloni Roy has outlined critical areas for the upcoming Union Budget to address. She emphasizes the need for significant reforms in India's customs law. Roy believes the budget presents a prime opportunity to rationalize duty rates and conduct a thorough review of the existing framework.
Customs Law Requires Comprehensive Overhaul
In a recent interview, Roy pointed out that customs remains one of the few indirect tax regimes yet to see comprehensive reform. Unlike income tax, excise, and GST, the customs framework has not undergone a major update. This lag creates challenges for businesses and the economy.
She specifically highlighted concerns over multiple duty slabs and inverted duty structures. These issues raise costs for key sectors like pharmaceuticals and agriculture. Simplifying these structures could reduce financial burdens and improve competitiveness.
GST Policy and Legislative Changes
Roy noted that while the GST Council primarily decides GST policy, certain recent decisions may require legislative changes. The Union Budget could serve as the vehicle for these necessary adjustments. Fixing GST gaps is essential for streamlining the tax system and supporting economic growth.
Focus on Boosting Domestic Manufacturing
A key recommendation from Roy involves using the budget to boost domestic manufacturing. By addressing customs and GST issues, the government can create a more favorable environment for local producers. This move would help reduce reliance on imports and strengthen India's industrial base.
Roy's insights underscore the importance of a proactive budget approach. Targeted reforms in customs and GST can drive efficiency, cut costs, and enhance India's manufacturing capabilities. Stakeholders are watching closely as the budget formulation progresses.
