Union Budget 2025-26 In this year, the government can take many big steps to provide relief to the general public from inflation. Confederation of Indian Industry (CII) Has suggested cutting excise duty on petrol and diesel and increasing minimum wages to boost consumption. CII believes that by reducing fuel prices, inflation can be controlled and the purchasing power of people of low income group can be increased.
Main suggestions of CII
1. Reduction in excise duty on petrol and diesel
- It has been recommended to reduce the prices of petrol and diesel.
- Central Excise:
- Retail price of petrol approx 21%,
- for diesel 18%,
- CII reported that from May 2022 onwards global crude oil prices will 40% reduction But fuel prices have not been adjusted.
- Reduction in excise duty:
- Inflation will decrease.
- Disposable income will increase.
2. Change in income tax rates
- Personal income up to Rs 20 lakh Suggestion of reduction in marginal tax rates for.
- Highest Marginal Tax Rate:
- currently 42.74%.
- It has been recommended to reduce it.
- Corporate Tax:
- normal rate 25.17%.
- There is a need to reduce the gap between marginal and corporate tax rates.
- With these changes:
- Consumption will increase.
- Economic development will be encouraged.
Impact of inflation and boost to consumption
Director General of CII Chandrajit Banerjee insist that Inflation has affected the lower and middle income groups Has affected the purchasing power of the people. The government should focus on increasing disposable income and encouraging consumption.
Consumption Voucher Suggestion:
- for low income group consumption voucher Issuance recommendation.
- Use of Voucher:
- Can be done only on specific goods and services.
- It should be valid for a specified period (6-8 months).
- Objective:
- To promote consumption in the stipulated period.
Suggestion for improvement in PM-Kisan scheme
- Currently farmers Rs 6,000 per year Are being given.
- by increasing it Rs 8,000 per year It has been recommended to do so.
- This will improve income and consumption in rural areas.
Potential benefits from the budget
- Control on inflation:
- Reduction in fuel prices will reduce transportation and production costs.
- Prices of daily consumption items will decrease.
- Consumption and Increase in Consumption:
- Reduction in income tax rates and vouchers will increase the purchasing power of the people.
- Strengthening rural economy:
- Improvement in PM-Kisan scheme will improve the economic condition of farmers.
- Promote economic growth:
- Increase in consumption will increase demand in the market, which will accelerate the economic cycle.
