Experts emphasise the need for a holistic new Tax Code ahead of the Budget, focusing on lower rates, a broader tax base, and improved compliance to drive economic growth and achieve a Vikshit Bharat by 2047.

Budget 2025-26 is expected to be presented on 1st February 2025.

Experts suggest simplifying the GST system by reducing the number of tax slabs, proposing to merge 12% and 18% into a single rate of 16%.

Lower tax rates could increase disposable income for citizens and companies, potentially boosting the economy.

Rajat Mohan, Senior Partner at AMRG & Associates, emphasises the need to simplify tax laws, ensure consistency, and focus on improving compliance while expanding the tax base.

Mohan highlights that the government loses over 50% of litigation cases before they reach the Supreme Court. He points out that tax demands are sometimes made on companies with revenues much smaller than the tax amount, urging a reduction in litigation for a more efficient tax system.

Suraj Malik, Managing Partner at Legacy Growth, mentions that while incremental changes have been made to the tax laws and some ambiguities have been resolved, there is still a significant gap between international and Indian tax practices. He stresses that foreign investors seek greater consistency in Indian tax laws.

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