Budget 2024 Expectations LIVE Updates: ITR, tax slabs, HRA, Auto, healthcare and other sectors voice their wishlist
Budget 2024 Expectations LIVE Updates: As anticipation builds for the upcoming Budget 2024 in India, a diverse array of sectors eagerly await FM Nirmala Sitharaman's announcements and fiscal policies that will shape their respective landscapes. From agriculture, infrastructure, and healthcare to education, finance, and manufacturing, each sector carries its own set of expectations for allocations and reforms.
The fiscal agenda, these sectors collectively voice their aspirations for a budget that fosters growth, innovation, and societal well-being.Gyanendra Tripathi, Partner & Leader, Western Region, Indirect Tax, BDO India: "The automotive sector currently has the most complex tax structure with multiple customs duties (ranging from 7.5 percent to 100 percent basic customs; GST ranging from 12 to 28 percent and Compensation cess ranging from 0 to 22 percent). Some level of rate rationalization is expected to reduce the interpretative issues and litigations.
The Electric Vehicles (EVs) industry has been representing for a reduction in the GST rate on parts/ components used in the manufacture of EVs (attracting GST at 18 percent / 28 percent) as well as on batteries (leviable to 18 percent GST) to 5 percent. This would address the current issue of the accumulation of input tax credits (ITC) by EV manufacturers.
In addition, the EV industry is also looking for an extension of FAME subsidies, clarity of tax treatment on EV charging, eligibility of ITC on setting up of the charging stations, and a GST rate reduction on entry-level two-wheelers. Lastly, the auto component manufacturers are looking for a uniform tax rate on the parts, ideally, 18 percent, to avoid disputes arising from differential rates of tax.
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