Senior officials from the PHD Chamber of Commerce and Industry (PHDCCI) met with Revenue Secretary Arvind Srivastava on Wednesday to present the industry's recommendations for direct and indirect tax policy.

As part of its ongoing pre-budget discussions, the government has held a series of meetings with industry groups to solicit feedback for the 2018 Union Budget. The conversations are focused on improving the ease of doing business and extending tax breaks to the final mile.

Key Discussions

Following the meeting, PHDCCI CEO and Secretary General Dr Ranjit Mehta stated that the discussions centered on both taxation and business facilitation.

"We also discussed ease of doing business, which is the government's focus," he said, adding that the Chamber had provided specific proposals to help micro, small, and medium-sized firms (MSMEs) deal with liquidity difficulties.
Srivastava hailed the government's attitude as "very positive" and beneficial to the business.

Former PHDCCI President Saket Dalmia stated that the execution of new rules has encountered obstacles at the last mile. "The government has taken note of these issues and responded positively," said Mr. Singh.

Ashok Batra, Chairman of the PHDCCI's Indirect Tax Committee, described the discussion as "very constructive," saying that officials listened intently to the industry's concerns, notably those relating input tax credit.

Mukul Bagla, Chairman of the PHDCCI's Tax Committee, added to the discussion by highlighting the need for a more equitable personal income tax system.

"Despite the reduction in personal income tax rates in the last budget, tax collection has increased by 6.5 per cent so far this year," said the finance minister.

"We have suggested extending the tax cuts further — proposing a 20 per cent tax rate on incomes up to Rs 30 lakh, 30 per cent on incomes up to Rs 50 lakh, and 50 per cent thereafter — so that the salaried class can benefit from economic growth," the economist said.

The government is anticipated to continue discussions with various industry groupings in the coming weeks before finalising its Union Budget plans.