The Department of Revenue has officially kicked off preparations for the Union Budget 2026-27 by seeking suggestions from trade and industry associations.
The core focus of these suggestions must be on:
- Reducing Compliances
- Providing Tax Certainty
- Reducing Litigations
Important Guidelines for Submissions
The Ministry has given clear instructions and set boundaries for what will be considered:
| Area of Submission | Required Action/Policy Reminder |
| Tax Changes (Duty Structure/Rates) | Must provide economic justification and quantify the positive externalities. |
| Tax Incentives/Giveaways | Not sought. The policy is to phase out incentives, deductions, and exemptions. |
| GST-Related Requests | Will not be examined as part of the Annual Budget process. |
| Inverted Duty Structure | Correction requests must be supported by value addition data at every stage of manufacturing. |
Next Steps: Revenue Secretary Arvind Shrivastava has already begun meetings, and Finance Minister Nirmala Sitharaman will hold pre-Budget deliberations later this month. The expectation is a continued focus on system and process reforms to improve compliance and ease of doing business.
Would you like me to focus on the implications of the government’s policy to phase out tax incentives?
