PR No – 4
30th October 2025
New Delhi
PHDCCI Presents Pre-Budget Memorandum to Ministry of Finance, Aligning with Viksit Bharat, Ease of Doing Business and Make in India Vision
PHDCCI proposes growth-oriented tax reforms to boost investment, innovation, and manufacturing competitiveness
30th October 2025, New Delhi: A high-level delegation from the PHD Chamber of Commerce and Industry (PHDCCI) presented its Pre-Budget Memorandum to the Department of Revenue, Ministry of Finance, Government of India, at Kartavya Bhawan, New Delhi. The delegation comprised Mr. Saket Dalmia, Former President, Mr. Mukul Bagla, Chair, Direct Tax Committee, Mr. Ashok Kumar Batra, Chair, Indirect Tax Committee, Dr. Ranjeet Mehta, CEO & Secretary General, Ms. Babeeta Sharma, Director, and Mr. Sanat Kumar, Chief Economist. The meeting was chaired by Shri Arvind Shrivastava, IAS, Department of Revenue, along with senior officials of the Ministry.
PHDCCI’s recommendations emphasized creating a growth-enabling, predictable, and innovation-driven tax ecosystem that supports India’s transition toward a Viksit Bharat by 2047 and strengthens its position as a global manufacturing and knowledge hub under the Make in India initiative.
PHDCCI urged the Government to reintroduce and rationalize key provisions of the Income Tax Act to promote industrial expansion, research, and compliance simplification. It also proposed targeted reforms in the GST and Customs frameworks to enhance ease of doing business, reduce litigation, and boost the competitiveness of Indian value chains.
On the direct tax front, PHDCCI recommended to restore concessional corporate tax rate for new manufacturing units, a step expected to catalyze fresh domestic and foreign investments and create employment opportunities in high-growth sectors. PHDCCI further proposed deduction for research and development (R&D) expenditure to strengthen India’s innovation capacity and promote technological advancement.
To enhance tax efficiency and transparency, PHDCCI recommended a more streamlined and predictable personal income tax structure to boost disposable incomes and strengthen household consumption — a key driver of India’s growth momentum. PHDCCI further proposed simplifying the overall tax architecture by consolidating multiple levies into a single, transparent rate, improving ease of compliance and administrative clarity.
It also underscored the importance of faster and more transparent resolution of tax assessments and appeals, including clear timelines and accessible mechanisms for taxpayer representation, to build trust and reduce uncertainty.
PHDCCI emphasized the need for greater clarity and consistency in tax credit and refund processes to improve liquidity, reduce uncertainty, and support a more efficient flow of working capital across sectors.
PHDCCI also highlighted the importance of simplifying refund and credit mechanisms to ensure fairness in tax administration, particularly in cases where policy changes have retrospective implications. Such reforms, it noted, would enhance business confidence, reduce litigation, and promote a stable, investment-ready environment for enterprises, especially MSMEs that form the backbone of India’s manufacturing and services ecosystem.
Under Customs, PHDCCI recommended rationalisation of import duties across sectors such as steel, paper, gold, healthcare, and medtech to align domestic tariff structures with global benchmarks and support value-added manufacturing. Simplified customs procedures were also proposed to reduce transaction costs and improve trade facilitation.
PHDCCI underscored that a stable and forward-looking tax policy architecture is vital for maintaining macroeconomic stability, attracting long-term investments, and achieving sustained growth above 7% as envisioned under Viksit Bharat 2047.
PHDCCI appreciated the Ministry of Finance for its continued dialogue with industry stakeholders and reaffirmed its commitment to collaborating with the Government to build a competitive, innovation-led, and resilient economy that upholds the spirit of Make in India and advances the goal of a developed India by 2047.