The business physique has submitted its set of tax reform strategies for the subsequent union finances for 2026-27, overlaying each direct and oblique taxes, had been submitted to the income secretary, Arvind Shrivastava.
It has referred to as for time-bound dispute decision, rationalised tax deduction at sources (TDS) regime, and digital customs transformation. “Tax simplification will not be a concession; it's an funding in governance effectivity and when guidelines are clear and techniques are digital, compliance turns into computerized and disputes develop into distinctive,” CII director common Chandrajit Banerjee stated. CII expressed deep appreciation for the robust reform momentum created by the federal government lately, which has led to a extra predictable, technology-enabled, and growth-oriented tax atmosphere.
“The subsequent stage of reform should make sure that taxation not solely raises income effectively but additionally acts as a catalyst for funding, innovation and competitiveness,” Banerjee stated. “The finances is usually a pivot for a really fashionable, clear and globally benchmarked tax regime.” He cited the instance of GST 2.0 reforms, saying the buoyancy in revenues and the credibility of the fiscal-consolidation path have demonstrated that “prudence and progress can transfer collectively.”
Speaking of particular calls for, CII stated India's tax administration should now shift from being dispute-driven to being dispute-preventive, with over 500,000 appeals pending earlier than commissioners (appeals), involving virtually ? 18 lakh crore of disputed demand.
CII advisable that each one high-demand circumstances above ?100 crore be fast-tracked for decision inside one yr via a number of digital hearings and shut CBDT monitoring.”Parallel penalty proceedings ought to stay suspended till the primary enchantment is resolved, and draft orders needs to be shared for factual verification earlier than finalisation,” the chamber stated. It additionally sought the revival of the Authority for Advance Rulings as an unbiased, quasi-judicial physique headed by retired Excessive Court docket judges, empowered to ship binding rulings inside six months and open to joint functions from business associations for sector-wide readability.Modernisation of customs, longer validity for advance rulings, and full digitalisation of clearance techniques had been amongst its main oblique tax proposals.
CII additionally proposed a phased roadmap towards paper-free customs by 2028. “If we now make our tax techniques as easy and predictable as they're digital and truthful, we is not going to solely elevate revenues extra effectively but additionally construct the foundations of an financial system that conjures up confidence-both at house and overseas,” Banerjee stated.
