Budget 2025 Expectations: A New Era for India's Economy

As India approaches the unveiling of the Union Budget 2025, the nation's economic future hangs in the balance. Finance Minister Nirmala Sitharaman is at the helm, with India Inc. eagerly awaiting reforms that promise to align with the government's vision of a 'Viksit Bharat' and enhance the 'Ease of doing business'. The past year has been marked by transformative changes, including clarifications on taxability issues and the introduction of the GST Amnesty scheme, setting the stage for further reforms.

Streamlining the Tax Structure

With the Compensation Cess set to expire in March 2026, there's a growing call for a simplified, three-tier tax system. This move aims to reduce the tax burden on consumers and stimulate domestic manufacturing, in line with the 'Make in India' vision. A streamlined compliance framework is crucial for the success of GST administration, with businesses hoping for reforms that simplify the compliance process and overhaul the current GST return filing system.

Customs Compliance and Tariff Rationalization

The complexity of Customs compliances continues to be a significant hurdle. Rationalization of Customs tariff rates is critical, with the industry awaiting reforms aimed at simplifying Customs tariffs and reducing trade disputes. The introduction of an amnesty scheme for ongoing Customs related matters could be a transformative step, especially for small businesses.

Special Valuation Branch Reforms

Almost a decade since the last revamp, the Special Valuation Branch (SVB) procedures under Customs are in dire need of reform. A time-bound approach to investigations and a dedicated scheme with a fixed timeline for resolution could address the substantial backlog and streamline the process.

As Union Budget 2025 approaches, the anticipation for reforms that streamline the tax system, tackle long-standing challenges, and create an ecosystem for growth and innovation is palpable. The hope is that these reforms will pave the way for a 'Viksit Bharat'.