Budget 2025-26: CII calls for cut in excise duty on fuel, consumption vouchers to stir demand – Newz9

NEW DELHI: Industry physique CII in its funds ideas for 2025-26 has really useful reducing the excise duty on gasoline to enhance consumption, particularly on the decrease revenue degree, arguing that gasoline costs considerably drive inflation. The funds might additionally contemplate decreasing marginal tax charges for private revenue up to Rs 20 lakh every year. This would assist set off the virtuous cycle of consumption, greater progress and better tax income, mentioned CII.
Asserting that the hole between the very best marginal fee for people at 42.74 per cent and the traditional Corporate Tax Rate at 25.17 per cent, is excessive, it mentioned, inflation has diminished the shopping for energy of decrease and center-revenue earners.
“The central excise duty alone accounts for approximately 21 per cent of the retail price for petrol and 18 per cent for diesel. Since May 2022, these duties have not been adjusted in line with the approximately 40 per cent decrease in global crude prices. Lowering Excise duty on fuel would help reduce overall inflation and increase disposable incomes,” the trade physique mentioned.
Chandrajit Banerjee, Director General, CII, mentioned home consumption has been crucial to India’s progress story, however inflationary pressures have considerably eroded the buying energy of shoppers.
“Government interventions could focus on enhancing disposable incomes and stimulating spending to sustain economic momentum. Persistent food inflationary pressures particularly impinge upon low-income rural households who allocate larger share to food in their consumption basket”, he added.
According to him, whereas current quarters have proven promising indicators of restoration in rural consumption, focused authorities interventions, equivalent to rising per unit profit beneath its key schemes like MGNREGS, PM-KISAN and PMAY, and offering consumption vouchers to low-revenue households, can additional improve the agricultural restoration.
In its pre-funds proposals, CII has additionally really useful a rise in the every day minimal wage beneath the MGNREGS from Rs 267 to Rs 375 as steered by the ‘Expert Committee on Fixing National Minimum Wage’ in 2017, with the trade physique estimating that this can entail a further expenditure of Rs 42,000 crore.
Further, it urged the federal government to increase the annual payout beneath the PM-KISAN scheme from Rs 6,000 to Rs 8,000. Assuming 10 crore beneficiaries, this can entail a further expenditure of Rs 20,000 crore, CII mentioned.
The Confederation of Indian Industry (CII) additionally sought a rise in the unit prices beneath the PMAY-G and PMAY-U schemes, which haven’t been revised because the scheme’s inception.
The CII steered the introduction of consumption vouchers, focused at low-revenue teams to stimulate demand for specified items and companies over a delegated interval.
The vouchers might be designed to be spent on designated objects (particular items and companies) and might be legitimate for a delegated time (like 6-8 months), to guarantee spending. The beneficiary standards might be outlined as Jan-Dhan account holders who aren’t beneficiaries of different welfare schemes.