Industry body PHDCCI on Thursday met Finance Minister Nirmala Sitharaman, ahead of the Budget 2024-25, which will be presented next month. The industry body suggested 10 action points, including manufacturing boost, PLI expansion, rationalisation of income tax, status quo on corporate tax, and further ease of doing business.

After the meeting, Sanjeev Agrawal, president of the PHD Chamber of Commerce and Industry, said, “We recommend status quo on the corporate tax rate at 22 per cent for existing companies and 15 per cent for new manufacturing companies incorporated after October 1, 2019, to enhance the manufacturing share in GDP.”

The middle class must be spared from the 30 per cent tax rate and this rate must be applicable only to those with taxable income above Rs. 40 lakh, this will support consumption demand in this country, said Agrawal.

PHDCCI suggests 10 reforms to strengthen India’s journey towards Viksit Bharat:

1. Further reforms to enhance the manufacturing share in GDP to 25 per cent by 2030.

2. Expand the PLI scheme beyond the 14 sectors with the addition of more labour-intensive sectors.

3. Change in Classification Norms of MSMEs for NPAs from the 90-day limit to 180 days.

4. Rationalisation of direct taxes for the middle class.

5. Focus more on tier 2 and 3 cities with state-of-the-art infrastructure and smart villages with adequate facilitation of public utilities.

6. Status quo on the corporate tax rates.

7. Strengthen University-Industry Linkages to enhance R&D activity in the country.

8. Reduce costs of doing business including costs of capital, costs of power, costs of logistics, costs of land and costs of compliance.

9. Implement the four labour codes across the states to enhance the competitiveness of the industry.

10. Strengthen supply chains and address the shortages in key food items to mitigate inflationary pressures.