The Finance Ministry is inviting companies and trade bodies to share their suggestions on possible changes to tax rates and measures to simplify tax compliance. These inputs will be considered for the Union Budget for FY 2026-27, which will be presented on February 1, 2026.
In a customary communication to trade and industry associations ahead of the Union Budget, the Revenue Department’s Tax Research Unit has invited them to submit their suggestions by November 10.
These suggestions may include proposed changes to the duty structure and tax rates, recommendations for broadening the tax base for both direct and indirect taxes, and economic justifications for these changes. Additionally, they can include ideas for easing compliance with tax regulations.
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Your recommendations and views might be supplemented and explained via related statistical data for the production, prices, revenue implications of the changes suggested, and any other details to support your proposal.
According to the ministry, any requests concerning the rectification of the inverted duty structure for a commodity must be accompanied by value addition at each phase of the commodity’s manufacturing.
The Ministry for the direct taxes cited that the policy of the government in the medium term is to phase out tax incentives, deductions, and exemptions while rationalising the tax rates.
The ministry seeks the industry to list out “positive externalities” that come from the direct tax recommendations and their quantification.
