To ensure more disposable income in the hands of the middle class, the government should reduce personal income tax rates in the general budget for the financial year 2025-26. Along with this, there is also a need to reduce excise duty on fuel and give incentives to employment sectors. Representatives of industry bodies made these suggestions in their traditional pre-budget meeting with the Finance Minister on Monday.

During the fifth consultation meeting of Finance Minister Nirmala Sitharaman before the budget, industry bodies also raised the issue of China dumping excess stock globally, including India, and the challenges posed to food security and inflation due to the 'climate emergency'. The general budget for the financial year 2025-26 will be presented on February 1. Apart from the Finance Minister, the meeting was also attended by the Finance Secretary, Secretary of DIPAM (Department of Investment and Public Asset Management), Secretary of the Department of Economic Affairs, and Chief Economic Advisor to the Government of India.

After the meeting, Confederation of Indian Industry (CII) President Sanjeev Puri told reporters that the Indian economy is performing very well, but there are many challenges at the global level. He said, "China is dumping a lot of products in different parts of the world including India. We also have the issue of climate emergency, which affects food security and inflation among other things. We have given many suggestions and ideas in this regard. "Puri said that to promote consumption, he has suggested that some relaxation should be given in the marginal income tax rate on income up to Rs 20 lakh so that consumption is boosted, there is more disposable income and in turn, there is a jump in revenue. He further said, "We have also suggested that the excise duty on petroleum should be reduced slightly. This will also lead to more disposable income. " FICCI Vice President Vijay Shankar, who was present in the meeting, said, "The Finance Minister and his colleagues listened to the industry very patiently today. Around 13 people from various industry bodies were present at the meeting.

PHDCCI President Hemant Jain said, "We suggested the government reduce personal income tax so that people can have more money in their hands. This will boost demand and reduce inflation. We have also asked for GST simplification." Assocham President Sanjay Nair said that it was suggested to focus on simplifying procedures for MSMEs, increasing credit flow, and rationalization of things like TDS.

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