Financial sector participants pitch for tax sops and removal of tax anomalies in Budget

Union finance minister Nirmala Sitharaman with industry leaders and associations during a pre-Budget consultation meeting in New Delhi on June 20

Financial sector players on Thursday made a case for tax sops in the upcoming FY25 Budget for deepening of the market.

In a pre-Budget meeting with Union finance minister Nirmala Sitharaman here, some of the players urged the government to fix tax arbitrage wherever it exists.

This was the second Pre-Budget Consultation which was attended by leading experts of the financial and capital markets sector in connection with the forthcoming General Budget 2024-25, the finance ministry said in a post on X.

Union Minister for Finance & Corporate Affairs Smt. @nsitharaman chairs the third Pre-Budget Consultation with industry leaders and associations in connection with the forthcoming General Budget 2024-25 in New Delhi, today.

The #PreBudget consultation meeting was also attended… pic.twitter.com/WLg6eJJFyN

— Ministry of Finance (@FinMinIndia) June 20, 2024

The full Budget 2024-25 is expected to be presented in Parliament next month.

Emerging out of two-hour meeting with the finance minister, Arun Kohli, MD & Country Head, Morgan Stanley India Company, said tax policies need to be stable and long-term oriented.

Participants also made their point on capital gains tax and securities transaction tax.

According to George Alexander Muthoot, MD of Muthoot Group, some of the players pitched for deepening the market and provide some tax incentives.

"We've suggested that since NBFC credit has grown and RBI has flagged over-dependence on banks, allocation of funds from SIDBI and NABARD could increase for refinancing of NBFCs," Raman Aggarwal, Director FIDC said.

NBFCs (non-banking financial companies) also sought clarity on GST demand on co-lending and payment of GST on service fee, Agarwal said.

Asset management companies discussed issues related to GIFT CITY also and the ways to retain capital within the country, he added. PTI DP HVA