Take tax action for Viksit Bharat in the Union budget for 2025-26

The government could take major steps towards its worthy goal of a tax regime that's simple, predictable and competitive

- CHANDRAJIT BANERJEE .

Balancing fiscal prudence with the need to provide a growth impetus has been a hallmark of our government over past Union budgets. Tax buoyancy has improved, while taxation has been simplified and ease of paying taxes enhanced. With a keen eye on resilience, the 2024-25 budget laid the groundwork for a more robust economy, one that is prepared to withstand varied headwinds on its way towards the national vision of a 'Viksit Bharat' or developed India.

Within the overarching ambit of 'fiscal realism' lies a fine balancing act of the government's expenditure with revenue. While garnering more resources for growth, I am sure the government would further strengthen the taxation regime to enhance simplicity and certainty, offering the country a more competitive regime that further improves the ease of paying taxes. The budget for 2024-25 did a fine job on these. With an overall objective to plan for India@100, it announced various targeted measures on the taxation side (both direct and indirect) to increasingly align revenues with its long-term goal of a developed nation.

Particularly praiseworthy is the government's proposal to undertake a comprehensive review of the Income Tax Act of 1961 within the context of reviewing the entire direct and indirect taxation regime. In addition, the Confederation of Indian Industry (CII) suggests that the government consider setting up an expert committee with industry participation.