PHDCCI Calls for Tax Reductions to Boost Compliance and Economy

The PHD Chamber of Commerce and Industry (PHDCCI) has advocated for significant tax reforms aimed at easing the financial burden on middle-income earners in India. Their proposal includes lowering personal income tax rates for individuals earning up to Rs 50 lakh annually, with the intent of bolstering compliance and economic growth.

The current highest tax rate under the new income tax regime is 30 percent, applicable to individuals earning over Rs 24 lakh annually. In its pre-Budget recommendations to Revenue Secretary Arvind Shrivastava, PHDCCI suggests restructuring the tax brackets to provide major relief to middle-income earners while maintaining a robust revenue stream.

Further, PHDCCI argues for the reduction of corporate tax rates, noting that such measures in the past have increased tax compliance and revenues. The chamber also highlights the potential benefits of reintroducing concessional tax rates to attract foreign manufacturing investments. Other recommendations include improvements to the indirect taxation system and greater efficiency in tax audit processes.