FICCI demands tax relief and reforms for Budget 2027-28

The Federation of Indian Chambers of Commerce and Industry (FICCI) has sent important recommendations to the Finance Minister for the upcoming Budget 2027-28. According to a report by 'The Economic Times' on this subject, FICCI has primarily emphasised changes in the taxation system and creating a more favourable environment for investors.

FICCI has made a special demand to reinstate the Long Term Capital Gains (LTCG) tax exemption on listed shares. The organisation has drawn the government's attention to the fact that Foreign Portfolio Investments (FPI) are being withdrawn due to the impact of capital gains tax. FICCI stated that since this situation could affect the investment climate, it is necessary to re-implement the LTCG exemption.

Discussing other aspects of taxation, FICCI has requested relief in TDS (Tax Deducted at Source) rules. The organisation suggested that the government should make TDS rules lighter, so that the burden on businesses and investors is reduced and financial processes become simpler.

In addition, FICCI has expressed concern over the delays in the tax appeal process. The organisation has urged the government to take steps to quickly resolve the backlog issues of tax appeals. Rapid disposal of tax disputes will bring clarity to the business world and reduce legal complications.

FICCI has placed special emphasis in its proposal on the fact that it is extremely essential to provide certainty to long-term investors. When investors commit capital for the long term, there should be stability and predictability in tax rules so that they can invest in the Indian market with confidence.

By sending all these recommendations to the Finance Minister, the organisation has expressed hope that these issues will be addressed in Budget 2027-28. FICCI believes that if LTCG exemption, relief in TDS, and speed in the appeal process are brought about, it will accelerate the country's economic growth and attract foreign investors again.

The main objective of these recommendations is to increase investment by reducing the tax burden and making administrative processes more efficient. The issues raised by FICCI, especially in the context of the stock market and foreign investment, are considered important to maintain market momentum.

FICCI is a leading industry organisation in India that represents the interests of industrialists and traders across various sectors and assists the government in formulating economic policies.