Budget 2024 Expectations: CII does not think that the compulsions of coalition politics will hinder reforms in the third term of Prime Minister Narendra Modi.
Instead, it believes that the performance of the Indian economy and the success of policies in the last two terms will lay the ground for accelerating this process. CII estimates that retail inflation will remain around 4.5 percent this year due to a good monsoon
In view of the high level of inflation in the upcoming full budget for the financial year 2024-25, there is a need to consider income tax relief for people in the lowest slab. This has been said by Sanjeev Puri, the new President of CII (Confederation of Indian Industry). Puri also suggested creating an institutional platform to build consensus between the Center and the states to successfully carry forward all reforms related to land, labor, electricity and agriculture in an interview with news agency PTI.
The industry body said it does not think the compulsions of coalition politics will hinder reforms in the third term of Prime Minister Narendra Modi. Instead, it believes that the performance of the Indian economy and the success of policies in the last two terms will lay the ground for accelerating the process. When asked about expectations from the full budget for FY 2024-25, Puri said, “Broadly, I would say at this time that public capital expenditure, following the fiscal progress path, roadmap for investment in social infrastructure, green fund and more investment in the rural sector… these are the broad principles. ”
Also Read: Tax Return Filing Guide: Should you use ITR Form 1 or ITR Form 2?
Where has inflation reached in the country
consecutive month to 2.61 per cent in May this year due to rise in prices of food items, especially vegetables and manufactured goods. It was at 1.26 per cent in April and 3.61 per cent below zero in May 2023. Retail inflation fell to 4.75 per cent in May, the lowest level in a year. Puri said that CII estimates that retail inflation will remain around 4.5 per cent this year due to good monsoon. Puri believes that there will be some softening in interest rates in the second half of the financial year.
Simplification should continue in tax matters
When asked about tax, he said, “We suggest that the process of simplification should continue on this front. There are some suggestions regarding capital gains. Capital gains are different for different instruments. Can it be harmonized?” Puri further said that there are some operational difficulties in TDS (Tax Deducted at Source) and multiplicity of rates and CII will give priority to their simplification.
According to Puri, “…as far as customs duties are concerned, we should move to a three-tier structure over time, with primary at the lowest level, intermediates in the middle and then finished goods. All should have moderate rates over time with some exceptions as deemed appropriate.” The CII President also expressed hope that the reform process should be further strengthened.
