Panaji: The Goa Chamber of Commerce and Industry (GCCI) has urged the Central government to introduce incentives for honest and regular taxpayers. In a pre-budget submission to Union Finance Minister Nirmala Sitharaman, GCCI has proposed several measures aimed at simplifying tax compliance and reducing the financial burden on taxpayers.
The recommendations include faster processing of tax refunds, higher income tax thresholds, and more straightforward compliance processes. According to a GCCI official, raising income tax thresholds could alleviate the financial strain of rising household costs and stimulate economic growth by encouraging higher consumption. Among the proposed reforms, GCCI has suggested increasing the standard deduction under the new tax regime to 25% of the salary or Rs 1.5 lakh, whichever is lower. Additionally, the Chamber advocates raising the basic income tax exemption limit to Rs 5 lakh. The rebate under Section 87A should also be increased from Rs 7 lakh to Rs 10 lakh, under the new tax scheme, to provide further relief to taxpayers.
GCCI’s proposals extend to business operations as well. The industry body has called for a single-window registration system, which would streamline the process of obtaining essential registrations such as PAN, TAN, CIN (for companies/LLPs), and GST. This initiative aims to eliminate redundancy and expedite the entry of new businesses into the formal economy. “Currently, new business units must submit the same information to multiple state and central agencies to obtain various tax registrations. This duplication of efforts delays businesses’ integration into the formal economy,” explained the GCCI official. “We recommend that the Centre collaborates with state departments to ensure that local tax licences can also be obtained simultaneously.”
In its letter, GCCI has also proposed that tax deduction at source (TDS) rates should not exceed 5%, while long-term capital gains tax rates should be kept within a range of 10% to 15%. The Chamber argues that the extensive base of GST registrations and record GST collections justify a rationalisation of GST rates and slabs. This, they suggest, would reduce the tax burden, correct inverted duty structures, and prevent the cascading effects of taxes. “Reducing and simplifying GST rates will help avoid classification disputes and conflicting rulings. Rationalising GST rates must also address ‘blocked’ credits in GST and existing state taxes that remain unutilised in the value chain, causing a cascading effect on final prices,” the GCCI official added.
The proposed measures by GCCI reflect a comprehensive approach to tax reform, aiming to enhance compliance, reduce administrative burdens, and support economic growth. By incentivising honest taxpayers and simplifying tax procedures, GCCI believes that these changes can contribute significantly to a more robust and equitable economic environment in India.
