US-India Tax Forum Suggests FM Sitharaman To Enforce Stable Tax Environment, Enhance Ease Of Doing Business In Budget

The Forum noted that the economy needs an investment-led growth strategy and should adopt measures such as simplification of tax slabs, and rationalisation of the cost of doing business

The US-India Strategic Partnership Forum called on Finance Minister Nirmala Sitharaman to help develop a stable and predictable tax environment in the upcoming Budget scheduled to be tabled this month.

Sharing recommendations with the Finance Minister, the US-India Tax Forum, proposed that a stable tax environment remained crucial to enhance investment sentiment across sectors in the economy, reported PTI. Notably, the Forum is a dedicated Tax Policy Forum of the US-India Strategic Partnership Forum (USISPF). 

The body noted that the industry expects the Union Budget 2024-25 to initiate measures to help boost growth across sectors. The Forum stressed that the domestic economy needs an investment-led growth strategy and adopt measures such as enhancing the ease of doing business, simplification of tax slabs, and rationalisation of the cost of doing business.

The USISPF noted that the business community in the country expects the forthcoming Budget to introduce tax efficiency measures and improve the understanding around tax legislation to help augment investment opportunities.

Further, the forum also suggested that the government should aim to bring parity in tax paid by domestic and foreign entities across sectors. This measure would help establish equality in industries such as banking where foreign lenders have to pay higher taxes in India.

Tarun Bajaj, Chairperson, US-India Tax Forum and former Revenue Secretary, noted, “It is expected to introduce targeted reforms in direct taxes and customs policies to enhance India’s economic partnerships globally. The industry should anticipate measures to streamline corporate tax structures and transactions, incentivise investments, and simplify customs procedures to facilitate smoother trade flows. These initiatives are crucial for fostering a conducive business environment and strengthening bilateral economic ties, ensuring mutual prosperity and competitiveness in the global market. Additionally, they will further build on the ease of doing business for industries in India.”