F.No.334/10/2015-TRU

Government of India

Ministry of Finance

 Department of Revenue Tax Research Unit

****

Room No.153, North Block

New Delhi, dated the 8th October, 2015

To

Trade and Industry Associations     

Subject: Suggestions from the Industry and Trade Associations for Budget 2016-17 regarding changes in direct and indirect taxes.

Sir/Madam, 

In the context of formulating the proposals for the Union Budget of 2016-17, the Ministry of Finance would like to be benefited by the suggestions and views of your Association.  You may like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same.

2. Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support your proposal.  The request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggestions that are either not clearly explained or which are not supported by adequate justification / statistics. Further, as regards direct taxes, while forwarding your proposals, please take into consideration the Budget announcement made in Union Budget 2015-16 to reduce the rate of Corporate Tax from 30% to 25% over the next 4 years along with rationalization and removal of various kinds of tax exemptions and incentives. The Synopsis of your suggestions could be given in the following format:

Sr.No.

Issue

Justification

2.1 Further, in respect of proposals relating to changes in Customs and Central excise duty rates, the additional information as prescribed in the Annexure enclosed herewith, may be provided.

3. Your suggestions and views may be emailed, as word document in the form of separate attachments, in respect of Indirect Taxes (Customs, Central Excise and Service Tax) to [email protected]. and Direct Tax to [email protected]. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be sent to Shri Alok Shukla, Joint Secretary (TRU-I), and Service Tax to Shri Amitabh Kumar, Joint Secretary (TRU-II), CBEC, while the suggestions relating to  Direct Taxes may be sent to Ms Pragya S. Saksena, Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT . It would be appreciated if your views and suggestions reach us by the 25th October, 2015. 

Yours sincerely,  

(Himanshu Raina)        

Budget Officer (TRU) Tel: 011-2309 5547

ANNEXURE

S.No	HS Code	Description of the Product	Quantum of Imports 2013-14 and 2014-15	CIF value of imports 201314 and 201415	Quantum of domestic production 201314 and 2014-15	Value of domestic production 201314 and 201415	Unit Price (CIF)	Existing Duty	Proposed Duty	Revenue implication of the proposal	Implications of the proposal for the domestic industry

Pre-budget tax consultation seeks industry proposals to revise duty structures and broaden the tax base with supporting data. Request for industry submissions proposing changes to direct and indirect taxes, requiring economic justification and supporting statistics; Customs and Central Excise proposals must use the enclosed Annexure specifying HS codes, import and domestic production data, unit prices, existing and proposed duties, and revenue and domestic industry implications. Unclear or unsupported suggestions will not be examined. Electronic and hard copy submission channels are provided for indirect and direct tax proposals, and a synopsis template (issue and justification) is requested.