CII Urges Trust-Based Tax Reforms Ahead Of Union Budget 2026–27

A Strategic Blueprint For Fiscal Efficiency  
In a pre-budget memorandum submitted to the Ministry of Finance, CII has outlined a series of tax reform recommendations aimed at modernising India’s fiscal architecture. The industry body emphasized the need for a principle-based, technology-enabled, and trust-anchored tax system that aligns with India’s ambition of becoming a developed economy by 2047.

The reforms span both direct and indirect taxes, with a strong push for dispute resolution mechanisms, rationalised tax deduction at source (TDS), and digital transformation of customs. CII also advocated for a statutory taxpayer charter to enhance transparency and accountability in tax administration.

Key Highlights  

• CII calls for tax reforms rooted in trust, simplicity, and technology  
• Proposals submitted ahead of Union Budget 2026–27  
• Focus areas: simplified TDS, fast-track dispute resolution, digital customs  
• Supports India’s Viksit Bharat 2047 development roadmap  
• Emphasis on reducing litigation and improving compliance efficiency

Notable Updates  

• High-value tax disputes above ₹100 crore should be resolved within one year  
• CII recommends a unified digital interface for all tax-related interactions  
• Suggests modernising customs procedures to support export competitiveness  
• Advocates for a taxpayer charter to protect rights and streamline enforcement  
• Reforms aim to consolidate fiscal gains and boost investor confidence

Outlook Ahead  
CII’s proposals reflect a growing consensus among industry leaders for a more predictable and transparent tax environment. As India prepares for its next budget cycle, these reforms could play a pivotal role in enhancing ease of doing business, attracting investment, and fostering long-term economic stability.

Sources: Republic World, Economic Times, Daily Pioneer, INFC E Paper