Budget proposals lay ground for long-term reforms: NITI Aayog

New Delhi, July 24

Review of the direct tax and custom’s duty rates as announced by the Finance Minister in her Budget speech will prepare the ground for long term reforms, NITI Aayog Vice Chairman Suman Bery said on Wednesday.

Bery further said the Budget for 2024-25 was a structural budget, which will help in improving labour productivity by building a relationship between the workforce and the private sector.

“The Budget (2024-25) proposals provide a roadmap for review of direct taxes, customs duty rates meant to be done in the six months…will prepare the ground for longer term reforms,” he said.

The government on Tuesday announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read.

Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman has said the government will come out with SoP (Standard Operating Procedure) for TDS defaults and simplify and rationalise the compounding of such offences.

“I am now announcing a comprehensive review of the Income-tax Act,1961. The purpose is to make the Act concise, lucid, easy to read and understand.

“This will reduce disputes and litigation, thereby providing tax certainty to the tax payers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months,” Sitharaman has said.

Bery noted that fiscal consolidation is being maintained and improved in this year’s budget which is important. According to him, the Budget proposals provide long term vision and it is the first step towards Vikshit Bharat.