The Tamil Nadu Chamber of Commerce and Industry has called on Finance Minister Nirmala Sitharaman to eliminate the 28% GST slab and bring petroleum fuel under the GST regime. N Jegadeesan, the chamber’s president, attended the pre-budget meeting in New Delhi on Tuesday and submitted a memorandum to the finance minister.
The trade body highlighted that the 28% GST rate is excessively high and unique to India, leading to tax evasion and deterring honest traders. They stressed the need for a more reasonable tax structure to promote fair business practices.
During the 53rd GST Council meeting, chaired by Sitharaman in New Delhi, discussions included state representatives, economists, and industry stakeholders. These comprehensive pre-budget consultations aimed to incorporate diverse economic perspectives and state-specific demands, ensuring a balanced financial strategy for the Union Budget 2024-25.
In light of current challenges, the government plans to use the central bank dividend to tackle economic issues and garner public support amidst electoral uncertainties.
The upcoming Budget might raise the standard deduction limit for income taxpayers while maintaining the existing capital gains structure. Public consultations are focused on providing concessions for the middle class and addressing concerns over tax returns. The new regime offers a standard deduction for salaried taxpayers and an increased rebate under Section 87A, benefiting those with taxable income up to ₹ 7 lakh.
Expert Opinion:
‘Ensuring a balanced and fair GST structure is crucial for economic growth,’ said a senior economist. ‘Bringing petroleum fuel under GST could significantly streamline the tax system and reduce costs for businesses and consumers alike.’
The Tamil Nadu Chamber’s recommendations, if implemented, could lead to substantial changes in the country’s tax landscape, benefiting both traders and the general public.
