Utmost confidence Shown in India’s Potential

The government’s Viksit Bharat vision is reflected in the Union Budget with a persistent focus on ‘Make in India’, export promotion, and trade facilitation. The Finance Minister emphasised in the Budget speech, the tax department’s commitment to ‘trust first, scrutinise later’ which if applied efficiently, can ease the doing of business in India and help in creating certainties for foreign businesses.

India is emerging as a growing market for Global Capability Centers, which makes it even more crucial for the Indian government to adopt simple and minimal tax practices to attract foreign investment.

Despite the geopolitical uncertainties around the world, the finance minister displayed utmost confidence in India’s potential and introduced several tax reforms that support the government’s pledge to reduce the tax burden and move towards a trust-based tax framework.

While the government has over the past years taken several policy measures like introducing amnesty schemes, faceless assessment to aid tax reform, further changes have been introduced to facilitate trade by simplifying tax processes and introducing voluntary declaration schemes to reduce tax disputes.

In a significant move to prevent tax evasion, the Budget proposes the implementation of a Track and Trace Mechanism for specified commodities prone to evasion. This involves affixing a unique mark on such goods or packages to monitor their movement throughout the supply chain. It is an example of the adoption of global best practices.

The Union Budget introduced various amendments to boost domestic manufacturing, promote exports, and ease compliances, which aim at emphasising the need to show trust in taxpayers and build the economic strength of India.