Indirect tax proposals in Union Budget – A story of hits and misses

Last Union Budget before the General Elections next year was tabled in the Parliament amidst significant anticipation. The Budget aims to tick as many boxes as it could, without derailing the Government finances. The tax proposals intend to provide something to everyone, from industry to the middle classes, farmers, youth, women, and various social groups in line with vision of an inclusive growth.

On Indirect tax front, the proposals are directed at continuing the Government’s efforts towards rationalizing and simplifying the tax rates, reduce the compliance burden, promote exports, and boost domestic manufacturing. In line with this, the Basic Customs Duty rate slabs are proposed to be reduced from 21 to 13 to have fewer tax rates and reduce ambiguity on classification. The rate rationalization also aims at boosting ‘Make in India’ and ‘Aatmnirbhar Bharat’ initiatives by removing exemptions on import of certain finished articles, while continuing or extending exemptions on import of raw materials, parts, and components.

Please click here to read the full article by Manish Mishra, published in ET BFSI.