The CII has called for ‘marginal tax relief’ for individuals with annual incomes of up to ₹20 lakh, increased assistance under the PM Kisan scheme and higher daily wages under MNREGA to boost consumption.

In a pre-budget submission to revenue secretary Sanjay Malhotra, CII president Sanjiv Puri recommended reducing excise duties on petrol and diesel, rationalising capital gains taxes and maintaining current corporate tax rates.

The CII has suggested using a part of the ₹2.11 trillion RBI dividend to boost capital spending by 25 per cent in FY25. The group said this would sustain public capital expenditure growth and attract private investment by revitalising economic activities and creating demand.

To further enhance consumption, the CII proposed ‘marginal relief’ in income tax for taxable incomes up to ₹20 lakh in the upcoming budget.

Under the current tax system, taxpayers can choose between the old regime, which offers various exemptions and deductions, and the new regime, which provides lower rates but no exemptions.

The CII also recommended revising the MNREGA minimum wage to ₹375 per day from ₹267 per day, as suggested by the Expert Committee on Fixing National Minimum Wage, and raising the direct benefit transfer amount under the PM Kisan scheme to ₹8,000 per year from ₹6,000.

On capital gains tax, the CII proposed a long-term gains tax rate of 10 per cent on financial assets and 20 per cent (with indexation) on non-financial assets such as real estate. The holding period should be 12 months for financial assets and 36 months for non-financial assets. For short-term gains, it wants a 15 per cent tax rate on financial assets and applicable rates for immovable properties.