F. No. 334/4/2017-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

Room No. 244D, North Block

New Delhi, dated the 16th November 2017

To

Trade and Industry Associations

Subject: Suggestions from the Industry and Trade Associations for Budget 2018-19 regarding changes in direct and indirect taxes.

Sir/Madam,

In the context of formulating the proposals for the Union Budget of 2018-19, 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.

3.   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 and the plan of phasing out exemptions and tax incentives laid before the Parliament with the Union Budget 2016-17. The Synopsis of your suggestions could be given in the following format:

Sr. No.

Issue

Justification

3.1 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.

4. Your suggestions and views may be emailed, as word document in the form of separate attachments, in respect of Indirect Taxes [Customs and Central Excise [for commodities outside GST)] 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 Shri Rasmi Ranjan Das, Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT . It would be appreciated if your views and suggestions reach us by the 25th November, 2017.

Yours sincerely,

(Rahil Gupta)

Budget Officer (TRU)

 Tel: 011-2309 5547

Pre-budget tax consultation sought from industry: submit direct and indirect tax proposals with economic justification and statistics. Request for pre-budget input from trade and industry associations solicits proposals on changes to direct and indirect taxes, requiring economic justification supported by production, price and revenue statistics; corrections to inverted duty structures must include value-addition at each manufacturing stage. Submissions should follow a prescribed issue-justification synopsis, include annexure details for Customs and Central Excise where applicable, and be sent via designated electronic channels or as hard copies to specified officials by the stated deadline.