Interim Budget 2024 Expectations: Process Simplification for Ease of Doing Business and Make in India Initiative

As the interim Union Budget 2024-25 approaches, experts and stakeholders from various sectors have voiced their expectations, keenly anticipating key announcements that could shape the economic landscape. The budget, while not expected to introduce major policy shifts, is expected to focus on process simplification and streamlining, in line with the government's commitment to the 'Ease of Doing Business' and supporting the 'Make in India' initiative. 

Indirect tax and customs advisory and litigation expert Vivek Baj, Partner at ELP said, "Stakeholders across different sectors have outlined their expectations for the Union Budget 2024-25, anticipating key announcements. These include the introduction of an amnesty scheme for customs-related issues, enhanced benefits for service exports under the Foreign Trade Policy, and a similar amnesty scheme for GST matters. There's also a call for expanding the range of products eligible for the Product Linked Incentive (PLI) schemes. In the real estate sector, there's a significant interest in making Input Tax Credit (ITC) available for leasing activities. Additionally, there's a proposal to extend ITC benefits to Corporate Social Responsibility (CSR) activities.

While the Union Budget 2024-25 is unlikely to introduce major policy shifts in the taxation realm, given that is an interim budget, it is expected to focus on process simplification and providing clarifications to reduce legal disputes and complications. These measures aim to further the goals of 'Ease of Doing Business' and bolster the 'Make in India' initiative."

In a nutshell, the spotlight is on enhancing benefits for service exports under the revised Foreign Trade Policy and a similar amnesty scheme for GST matters, a reform eagerly awaited by many industries grappling with the complexities of the current GST framework.

The manufacturing sector is particularly optimistic, with hopes pinned on the expansion of the Product Linked Incentive (PLI) schemes to a broader range of products. 

In the real estate sector, a significant interest lies in making Input Tax Credit (ITC) available for leasing activities. This reform could revitalize the sector by reducing costs and encouraging investment. Additionally, there's a proposal to extend ITC benefits to Corporate Social Responsibility (CSR) activities, a move that could foster a culture of responsible business practices.

Also of interest: Check out 2024 Budget Expectations and Insights from BMR Legal and 2024 Interim Budget: Expectations and Predictions

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