PHD Chamber of Commerce and Industry (PHDCCI) has released its Pre-Budget Memorandum, emphasizing 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.