FTCCI hosts a Seminar on Post Union Budget 2023-2024 to discuss Implications for Trade & Industries
The Income Tax Collection Cost that the Income Tax Department incurs in India is the lowest in the world. “We spend just 57 paise to collect every hundred rupees Income Tax. We are one of the lowest in the world”, said Mr. Shishir Agarwal, Chief Commissioner of Income Tax, Hyderabad, Government of India while addressing a Seminar hosted by FTCCI on Post Union Budget 2023-2024---Implication for Trade and Industries. It was held at Federation House at Red Hills on Thursday morning.
Providing more details on the same, Mr. Shishir Agarwal said “UK spends 73 paise, Japan 174 paise, Germany 135 paise, Canada 150 paise, France 111 paise. The USA is the only country that spends less than us”.
I come from a department which people love to hate. No one wants us to visit them in our official capacity. But, we are doing really well. The numbers reflect our performance. For the year 2021-2022, we have collected an all time record tax. The net direct tax collections (income tax and corporate tax) reached an all time high of Rs 14.09 lakh. This year also it is equally good and stands at 14.08 lakh crore, 24% higher than the previous year, he added.
We are quicker in refunds than ever before. 65% of IT returns filed were processed and refunds were made within 24 hours of filing, he shared. We have moved to a faceless tax process, which is the first in the world. We understand tax payers’ aspirations and bring tailor-made initiatives for tax payers benefit for a better tomorrow. India’s time has come now, Shishir Agarwal stated.
Speaking about the Union Budget which was presented in Parliament yesterday, the Chief Commissioner of Income Tax, Hyderabad termed it as ‘progressive’. It was presented in line with Government of India policies and vision 2047. It was an effort moving to a new tax regime. It was simple and more open.
Participating in the Seminar, DP Naidu, IRS. Commissioner – Central Tax, Secunderabad Commissionerate said it was a budget of openness, transparency. There were no surprises and shocks unlike in the past when I joined the department 30 years ago. More legislative changes were proposed in the budget. The Finance Minister made a sincere effort in simplifying Indirect Taxes compliance towards incentivizing, encouraging exports and for manufacturing of greener products.
The Union Finance Minister Nirmala Sitharaman announced a reduction in Customs duty on lithium batteries, mobile phones components and others to boost their manufacturing in India he said and added that this will encourage manufacturing in a phased manner. It will also spur the growth of certain sectors. Except for a few legislative changes, not many changes were made to GST. This will also help to have stable revenue from GST, which stands now at 1,50,000crore, he said.
Giving his welcome address Mr. Anil Agarwal, President of FTCCI said the Union Finance Minister came out with a people centric budget taking into consideration the global recession and slowing growth rate. The increase in capital expenditure by 33% to Rs 10 lakh crore (3.3% of GDP) is the major initiative announced in the year 2023-2024. It provides impetus to infrastructure development and creation of jobs in large numbers, thus creating demand for goods and services, he added.
The budget presented on Wednesday was the mission for the next 25 years. It laid foundation for the same. It balanced one and presents a comprehensive plan for capital infrastructure spend and tax cuts that will have a positive impact on the country’s economic growth and job creation. It lays a path towards a sustainable foundation of inclusive growth and emerges as one of the strongest economies, said Sushil Sancheti, Chairman, JITO Hyderabad Chapter.
It was not an election budget. And it is not even an annual budget, but a budget to lay the foundation for the next 25 years, said Hari Govind Prasad, Chairman, Direct Taxes Committee of FTCCI.
It was a neutral budget, said VS Sudhir, Chairman, GST & Customs Committee of FTCCI. The Budget shouldn’t have been silent on setting up GST Tribunals. The taxpayers have been eagerly waiting for the announcement in the budget. The budget has disappointed tax payers on that front, he said.
Jayesh Sanghvi, Managing Partners of Ernst & Young LLP, Hyderabad said the subsidies have come down from 12.5 to 8.3 %. The budget has made the right posture for the right target. But it has not spelled out anything FRBM Act (Fiscal Responsibility & Budget Management). As per the latest position on the Act, the Government is required to limit the fiscal deficit to 3% of the GDP by March 31, 2021. Government is required to limit debt of the central government to 40% of the GDP by the year 2024-25. On the whole the budget has battled for policy stability on Tax and Fiscal front, he observed.
Over 200 professionals, experts from different walks of life attended the seminar.
Mr. Suresh Kumar Singhal, Vice President proposed vote of thanks. A technical session followed the Seminar.