Finance Ministry Invites Industry Suggestions for Union Budget 2026-27

New Delhi, October 28, 2025: The Finance Ministry has invited recommendations from trade and industry associations on changes to tax rates and simplifying compliance for the Union Budget 2026-27, which is set to be presented on February 1, 2026.

As part of its regular pre-budget exercise, the Tax Research Unit (TRU) of the Revenue Department reached out to various trade and industry associations and has asked them to submit detailed suggestions by the deadline of November 10.

Focus on Duty Structure, Tax Rates, and Compliance

The ministry has asked for suggestions for potential changes to duty structures and tax rates, as well as broadening the tax base for direct and indirect taxes. It also asked for suggestions aimed at easing compliance.

To provide credibility, the TRU has advised that all submissions be accompanied by economic rationale, including appropriate economic data on production, price and revenue implications of any suggested changes.

Support for Inverted Duty Structure Corrections

In addition the ministry has asked that any request for inverted duty structures to be corrected must be supported by evidence of value addition at all stages of manufacturing of the particular product.

Medium-Term Policy on Direct Taxes

With respect to direct taxes, the ministry reiterated that the government is taking a medium-term approach to phasing out exemptions, incentives, and deductions related to direct taxes while rationalizing rates to create better efficiency.

The Finance Ministry also encouraged industry participants to quantify the “positive externalities” resulting from their direct tax suggestions, highlighting broader economic or social benefits. The exercise is part of the government’s consultative approach to shaping a balanced, growth-oriented Union Budget for FY 2026-27.

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