Finance Minister Nirmala Sitharaman will present the interim budget on Thursday (February 1). Expectations for Budget 2024 include advocating for a progressive tax structure, targeted relief for SMEs, promoting digital transactions, and reviewing the GST structure. Tax incentives for sustainable practices and strategic investments in social sectors are also proposed.
India’s complex GST structure with its multiple rate slabs has stalled the dream of ‘One Nation, One Tax.’
“Streamlining rates and procedures could unclog the wheels of compliance and boost tax revenue – paving the path to an efficient unified regime. The upcoming budget must frontally address procedural headaches to realise a simplified GST’s full potential,” said Ashish Aggarwal, Director, Acube Ventures.
GST was envisioned as a landmark tax reform to integrate India’s fragmented market. “However, complex filings and frequent rate changes have harmed compliance. The budget must spur fresh thinking to resolve issues like inverted duty structures, while pushing export and job growth. With targeted changes, a simplified GST can yet become the tax law that unites India’s market,” said Agam Gupta. Executive Director at Share India Fincap Pvt. Ltd.
“Key measures may include advocating for a progressive tax structure, incentivizing compliance, and providing targeted relief for Small and Medium Enterprises (SMEs) to enhance economic inclusivity. We propose promoting digital transactions through incentives and calling for a comprehensive review of the Goods and Services Tax (GST) structure for simplification. Recognizing environmental responsibility, we suggest tax incentives for sustainable practices,” said Kuljeet Singh.
Read more at: livemint
Share this content: