New Delhi: FICCI’s survey has found out that a majority are demanding a review of the direct tax structure with a view to spur demand and boost growth. Ahead of the Budget 2025 presentation, the non-governmental trade association surveyed members to gauge their mood in regards to the economic condition and Income Tax .
After its survey, FICCI said the members wanted the government to have a relook at the Income Tax slabs and the tax rates as they think it could leave more money in the hands of people and spur consumption demand in the economy.
The FICCI conducted its Pre-budget 2025-26 survey between late December 2024 and mid-January 2025. It surveyed 150 companies spanning across diverse sectors. The comprehensive coverage presents a detailed insight into India Inc’s sentiments amid moderating economic growth.
The FICCI survey said the members expect that the country’s GDP growth will be 6.5-6.9 per cent in the 2025-26 financial year beginning March.
What FICCI survey said on Tax, fiscal consolidation
The surveyed members advocated for a strong policy push on simplifying the tax regime. The respondents called for addressing custom duty inversion, rationalisation of TDS provisions, and tax certainty. The members also demanded incentives and easy compliances through digitization for the EV and Green Renewable Energy sector.
The members acknowledged the government’s work towards fiscal consolidation which they think has placed India in good stead as the participants expect the government to remain on that course. A significant chunk of the respondents demanded macroeconomic policy interventions. Several members called for reforms to further enhance the ease of doing business.
About 47 per cent of the surveyed were confident about the government meeting the fiscal deficit target of 4.9 per cent for FY 2024-25. A majority of respondents pitched in for sustaining public capital expenditure, with 68 per cent calling for a thrust on capex to sustain the growth momentum.
Nearly 40 per cent of the surveyed members respondents wanted the government to continue support the MSMEs as the sector plays a crucial role in driving employment creations.
FICCI’s pre-budget survey reveals strong industry sentiment for income tax reforms to stimulate growth. Respondents anticipate 6.5-6.9% GDP growth in 2025-26, urging tax simplification, rationalised TDS, and addressing custom duty inversion. Support for fiscal consolidation and continued MSME support is also significant, highlighting the need for macroeconomic policy interventions to boost the economy. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
