• Notification Date: 31-12-2024
• Notification No: N/A

CII asks Budget 2025-26 to cut fuel taxes and boost rural recovery with vouchers and increased benefits

The Confederation of Indian Industry (CII) has presented a package of radical recommendations in the lead-up to the Union Budget 2025-26, thereby calling on the government to make a slew of changes that would go toward boosting consumption and alleviating pressures of inflation. One of the primary suggestions made has been cutting excise duties on fuel, which is one of the highest constituents in retail prices. Cutting them, considering that they were last hiked back in May 2022, can significantly help cut down on the rates of inflation and thus push up disposable incomes, which most lower- and middle-class families suffer from the worst.

The CII's proposal is also seeking a reduction in the marginal tax rates of individuals who earn up to Rs 20 lakh annually, which would induce further consumer expenditure and thereby induce tax revenues and growth. The body pointed out that the differential between personal income tax and corporate tax is too large, which is affecting the purchasing power of the consumers.

CII highlighted the need for rural recovery by calling for targeted interventions like raising the daily minimum wage under the MGNREGS from Rs 267 to Rs 375 and increasing the annual payout under the PM-KISAN scheme from Rs 6,000 to Rs 8,000. These measures would benefit low-income households and raise demand in rural areas.

The CII also recommended the introduction of consumption vouchers for low-income groups that could be used to buy a designated set of goods and services over a specified period. These vouchers would help the Jan-Dhan account holders who do not have any other welfare benefits in place, thus boosting immediate consumption and contributing to the recovery of the economy.

Through these recommendations, CII looks forward to helping India continue its growth momentum while catering to its most vulnerable citizens.