Updated January 27th, 2024 at 16:54 IST
CII proposes overhaul of indirect taxes in Interim Budget for global competitiveness
The industry body has called for the simplification of customs law and issuance of desired clarifications to ensure ease of compliance.
The Confederation of Indian Industry (CII) has outlined a comprehensive set of recommendations focused on the overhaul of indirect taxes. In response to the transformed global trade dynamics, CII suggests a strategic approach to the tariff structure, aiming to align domestic manufacturing with global trends and enhance India's export competitiveness.
Here are key recommendations for indirect taxes in the upcoming Budget
CII has advocated for a graded roadmap to gradually shift duty slabs to competitive levels. The industry body has said that phased manufacturing programmes, coupled with the Production Linked Incentive (PLI) scheme will be seen as catalysts for boosting domestic manufacturing.
A thorough review of final and intermediate products, in consultation with stakeholders, should be undertaken to optimise duty rates. Importation of inputs not manufactured in India should incur lower duties to enhance the export competitiveness of domestically manufactured final products, CII noted.
The industry body has called for the simplification of customs law and issuance of desired clarifications to ensure ease of compliance. The introduction of an effective dispute resolution scheme to streamline and expedite conflict resolution should be adopted, CII said.
For grievance redressal and digital transformation, CII has urged for the establishment of a robust and automated grievance mechanism and stresses for implementation of suggestions from the Ministry of Finance's Chintan Shivir for enhancing the redressal mechanism.
CII has proposed for inclusion of petroleum products, aviation turbine fuel (ATF), natural gas, and electricity under GST for a seamless flow of input tax credits.
Published January 27th, 2024 at 13:24 IST