Budget 2024: India Inc Urges Finance Ministry To Provide Middle-Class Tax Relief And Reduce Fuel Excise

India’s industry lobby groups are urging the Finance Ministry to consider personal tax benefits for the middle class and a simplification of the direct tax regime in the forthcoming Union Budget. During a meeting with Revenue Secretary Sanjay Malhotra, CII President Sanjiv Puri advocated for marginal tax relief for incomes up to Rs 20 lakh and a reduction in excise duty on petrol and diesel. Puri pointed out that despite a 40 percent drop in Brent crude prices, pump prices in Delhi have only decreased by Rs 1.8 per litre.

The call for tax relief comes amid concerns over skewed consumer spending, which was highlighted in India’s recent GDP readings. While the country’s GDP growth rate remains strong, slowing consumer demand poses challenges for certain sectors. Tax incentives aimed at easing the financial burden on consumers could boost spending. Meanwhile, consumer companies are optimistic about FY25, bolstered by the IMD’s forecast of a plentiful monsoon season.