Nagpur Business Guilds and Experts Submit Array of Pre-Budget Proposals to Finance Ministry
As the nation eagerly awaits the upcoming Union Budget, business guilds and independent experts from Nagpur have sent a comprehensive set of suggestions to the finance ministry. These proposals aim to stimulate economic growth, simplify taxation, and enhance savings. From innovative schemes to monetize gold lying in temples to significant reforms in personal taxation, the recommendations reflect a keen understanding of both local and national economic challenges.
Monetizing Temple Gold to Reduce Import Dependence
One of the most notable suggestions comes from BC Bhartia, President of the Confederation of All India Traders (CAIT). He proposes that the substantial quantities of gold stored in temples across India could be monetized. Under this scheme, banks would borrow the gold at a predetermined interest rate and subsequently lend it to jewellers. This initiative is expected to reduce the country's reliance on gold imports, thereby strengthening the economy and conserving foreign exchange reserves.
Taxation Reforms: Treating Husband and Wife as a Single Taxpayer
The Nagpur branch of the Institute of Chartered Accountants of India (ICAI) has put forward a groundbreaking proposal to treat husband and wife as a single taxpayer, particularly when the latter is a homemaker. This would involve clubbing their exemption limits, potentially simplifying the tax filing process and providing relief to families. Dinesh Rathi, representing the ICAI Nagpur branch, emphasized that this move could enhance the ease of doing business by reducing administrative burdens. Additionally, the branch has advocated for the elimination of Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) on sales, citing the tedious nature of collection and return filing as impediments to business efficiency.
Revising Basic Exemption Limits in Line with Inflation
Chartered accountant Tejinder Singh Rawal, a member of the Vidarbha Industries Association's (VIA) taxation forum, has called for an annual revision of the basic exemption limit for income tax, directly linked to inflation metrics such as the Consumer Price Index (CPI). This proposal aims to ensure that only real income is taxed, protecting taxpayers from bracket creep due to inflation. By making the exemption limit proportionate to inflation, the government could create a more equitable and transparent tax system that garners widespread acceptance.
Reducing Lock-in Periods for Small Savings Instruments
The Chamber of Associations of Maharashtra Industry and Trade (CAMIT), led by President Dipen Agrawal, has suggested reducing the lock-in period for small savings instruments like National Savings Certificates (NSC). Shorter lock-in periods are expected to free up funds earlier, thereby encouraging household savings and providing liquidity to investors. CAMIT has also recommended incentives for the green energy sector, highlighting the importance of sustainable development in economic planning.
Additional Measures to Streamline Taxation and Reduce Litigation
GST lawyer S N Kapoor has proposed measures to end litigation and introduce an amnesty scheme, aiming to resolve pending disputes and foster a more business-friendly environment. These suggestions, along with others from various stakeholders, have been compiled and forwarded to the finance ministry through respective head offices. As finance minister Nirmala Sitharaman reviews these proposals, the business community in Nagpur and beyond remains hopeful that their insights will shape a progressive and inclusive budget.
