F. No. 334/10/2025-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

Room No.146-G, North Block

New Delhi, dated 27th October, 2025

To,

Trade and Industry Associations

Subject: Suggestions from the Industry and Trade Associations for Budget 2026-27 regarding changes in direct and indirect taxes.

Sir/Madam,

In the context of formulating the proposals for the Union Budget of 2026-27, 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. As can be seen that the Government policy with reference to direct taxes in the medium term is to phase out tax incentives, deductions and exemptions while simultaneously rationalising the rates of tax. It would be also desirable that while forwarding the suggestions/ recommendations, positive externalities arising out of the said recommendations and their quantification are also indicated. You may also like to give your suggestions for reducing compliances, for providing tax certainty and reducing litigations. The Synopsis of your suggestions could be given in the following format:

S.No.

Issue

Justification

4. It may be noted that GST related requests are not examined as part of Annual Budget. Suggestions related to Customs and Central Excise may be forwarded in the following format:

S. No.

Request

Existing rate of duty

Requested rate of duty

Justification

Additionally, the relevant information as prescribed in the Annexure-A enclosed herewith, may be provided.

5. 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 Taxes to [email protected]. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be addressed to Shri Gaurav Singh, Joint Secretary (TRU-I), CBIC, while the suggestions relating to Direct Taxes may be addressed to Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT. It would be appreciated if your views and suggestions reach us by the 10th November, 2025.

Yours sincerely,

Ananya Kumar Singh

Budget Officer, Tax Research Unit, Dept. of Revenue

Tel: 011-2309 5543

ANNEXURE -A

S. No	HS Code	Description of the Product	Quantum of Imports 2021-22 to 2025-26 (year wise)	CIF value of imports 2021-22 to 2025-26 (year wise)	Quantum of domestic production 2021-22 to 2025-26 (year wise)	Value of domestic production 2021-22 to 2025-26 (year wise)	Unit Price (CIF)	Existing Duty	Proposed Duty	Revenue implication of the proposal	Implications of the proposal for the domestic industry

 

Tax policy consultation solicits industry proposals for direct and indirect tax changes, requiring economic justification and supporting data. Solicitation of industry proposals for direct and indirect tax changes for the Union Budget requiring economic justification, year-wise import and domestic production statistics, quantified revenue implications, and value-addition support for inverted duty structure corrections; GST matters excluded. Customs and Central Excise requests must state existing and requested duties in prescribed format. The Government indicates a medium-term approach to phase out tax incentives and rationalise direct tax rates, and seeks suggestions that reduce compliance, improve tax certainty, quantify positive externalities, and limit litigation, with specified submission channels and detailed annexural data fields.