FY27 Budget: FinMin Seeks Tax Change Suggestions

New Delhi, Oct 28 (PTI) The Finance Ministry has called for suggestions from trade and industry on tax rate changes and ease of compliance expected in the Union Budget for the 2026-27 fiscal to be presented on February 1, 2026.

In a customary communication to trade and industry associations in the run-up to the Union Budget, the Revenue Department's Tax Research Unit has asked them to send their suggestions by November 10.

The suggestions could be for changes in the duty structure, rates and broadening of the tax base on both direct and indirect taxes, giving economic justification for the same, as well as those relating to easing compliance.


"Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implications of the changes suggested and any other information to support your proposal," the communication added.

The ministry also said that requests for correction of inverted duty structure, if any, for a commodity, should be supported by value addition at each stage of manufacturing of the commodity.

With regard to direct taxes, the ministry said the government policy in the medium term is to phase out tax incentives, deductions and exemptions while simultaneously rationalising the rates of tax.

The ministry asked the industry to list out "positive externalities" arising from the direct tax recommendations and their quantification.