Initiating a unique step, the Union Finance Ministry is seeking suggestions from industry and trade associations to formulate the next budget.
The suggestions requested would be pertaining to direct and indirect taxes.
Finance minister Nirmala Sitharaman, who was suppose to announce additional measures to fuel a slowing economy within a month of her maiden budget being approved by Parliament, will be presenting the annual budget for the financial year 2020-21 on February 1.
While the ministry is organising pre-budget consultations with representatives from across different sectors and stakeholders, the department of revenue in the finance ministry perhaps for the very first time announced circular requesting suggestions for changes in income tax rates for both individuals and corporates as well as in indirect taxes namely excise and customs duty.
The November 11 circular asked industry and trade associations to give “suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving the economic justification for the same.”
“Your suggestions and views may be supplemented and justified by relevant statistical information about the production, prices, revenue implication of the changes suggested and any other information to support your proposal,” it said.