Published 18:39 IST, July 8th 2024
Budget 2024: Industry calls for tax relief to stimulate growth
The industry has also called for reducing corporate taxes, phasing out tax exemptions, and broadening the tax base to spur economic growth.

Budget 2024: Industry leaders are advocating for significant tax relief in the upcoming Union Budget FY25 to stimulate consumption, particularly among lower-income brackets. Finance Minister Nirmala Sitharaman will present the budget on July 23, marking the first major policy document of the new government.
The industry has also called for reducing corporate taxes, phasing out tax exemptions, and broadening the tax base to spur economic growth. Assocham, a leading industry body, stressed the need to simplify the tax system to enhance compliance and promote investment. "Consider measures such as reducing corporate tax rates, phasing out tax exemptions, and broadening the tax base to make the tax regime more efficient and equitable," Assocham stated.
ICRA, a rating agency, predicted the government might set a fiscal deficit target of 4.9-5 per cent for FY25, down from the 5.1 per cent estimated in the interim budget on February 1, while maintaining the capital expenditure target at Rs 11.1 lakh crore. ICRA noted that while revenue trends are favourable, fiscal consolidation could become more challenging beyond the current fiscal year.
Mayank Gupta, co-founder and COO of Zopper Insurtech, expects the budget to promote economic growth and provide relief for lower-income brackets to boost consumption. He suggested amending Section 80C of the Income Tax Act to increase the limit on insurance premium payments, thereby encouraging more people to buy insurance. Additionally, he recommended allowing deductions for term life insurance under the new tax regime.
Anish Mashruwala, partner at JSA Advocates and Solicitors, expressed that the NBFC sector seeks reduced regulatory compliance to ease business operations while maintaining necessary oversight.
Economist Rumki Majumdar from Deloitte India proposed expanding the Production Linked Incentive (PLI) schemes to sectors that can generate more jobs, such as textiles, handicrafts, and leather, and continuing support for successful sectors like electronics, auto, and semiconductors.
Vishal Goel, managing director of RX Propellant, highlighted the potential of the life sciences sector, which is attracting global players for contract manufacturing and establishing global capability centers. Goel hopes the budget will prioritise the life sciences sector to enhance investment and innovation.
Pankaj Sharma, CEO of Religare Finvest, suggested measures to reduce financing costs through interest rate subsidies and improve credit access for new entrepreneurs. He also stressed the importance of investment in digital infrastructure and skill development to boost MSME productivity.
Assocham also recommended structural reforms in the agriculture sector to improve productivity, market access, and income opportunities for farmers. They proposed promoting contract farming, investing in agri-infrastructure, integrating value chains, and encouraging diversification into high-value crops.
(with PTI inputs)
Updated 18:39 IST, July 8th 2024