Finance Ministry Invites Industry Suggestions for Union Budget 2026-27 on Direct and Indirect Taxes

The Finance Ministry has initiated the consultation process for the Union Budget 2026-27, inviting suggestions from trade bodies, chambers of commerce, and industry associations regarding reforms in both direct and indirect taxation. Stakeholders have been asked to submit proposals on rationalisation of tax rates, reduction of exemptions, simplification of compliance, and correction of inverted duty structures. While GST-related inputs fall under the GST Council’s purview, this exercise aims to streamline corporate and personal taxation under the Income Tax Act and enhance efficiency in Customs and Excise duties. The government also emphasized the need for detailed impact analysis and statistical backing for any proposed changes. This move signifies the Centre’s intent to foster participatory policymaking and ensure tax reforms are aligned with industry realities, growth objectives, and fiscal prudence.