FICCI's Vision for Union Budget 2026-27: Streamlining Tax and Trade Policies

The Federation of Indian Chambers of Commerce and Industry (FICCI) has articulated its expectations for the Union Budget 2026-27, urging initiatives to accelerate tax proceedings, simplify the TDS system, and enhance clarity in cross-border supply chains. In a press release, FICCI highlights these steps as crucial for alleviating taxpayer strain and systemic pressure due to pending cases and blocked refunds.

FICCI advises addressing the tax appeal backlog through measures such as filling vacancies, establishing differentiated targets for case resolutions, enabling virtual hearings, and granting recovery stays for prolonged appeals. It also suggests harmonization between faceless and jurisdictional units, while proposing innovative solutions like integrating stay orders with the Central Processing Centre to prevent automatic refund adjustments.

Proposals further include a streamlined TDS framework, adjustments to mitigate compliance burdens, and clarifications to prevent unintended tax exposures in manufacturing supply chains. FICCI also seeks amendments on capital distribution taxes and suggests expanding customs authority infrastructure to improve the predictability and consistency of trade practices as the government readies the budget.