The Ministry of Finance has initiated the pre-budget consultation process for the upcoming Union Budget 2026-27, inviting inputs from industry and trade associations on proposed changes to direct and indirect taxes.
In an official communication dated October 27, 2025, the Tax Research Unit (TRU) under the Department of Revenue requested associations to share well-reasoned suggestions, supported by relevant statistical data, to help shape the forthcoming budget. The Ministry emphasized that proposals should include economic justifications, such as production and price statistics, value addition details, and potential revenue implications.
The circular further highlights the government's medium-term policy to phase out tax exemptions and deductions while rationalizing tax rates. Associations have also been encouraged to suggest ways to reduce compliance burden, enhance tax certainty, and minimize litigation.
For indirect taxes, suggestions related to Customs and Central Excise (for goods outside GST) should be sent to budget-cbec@nic.in, while direct tax proposals may be emailed to ustpl3@nic.in. The Finance Ministry has set November 10, 2025, as the deadline for submitting views.
It has been clarified that GST-related issues will not be considered under the Union Budget exercise, as they fall under the purview of the GST Council.
The government has also shared a structured format for submitting proposals, asking associations to quantify both the positive externalities and revenue effects of their recommendations. Detailed data on imports, domestic production, and pricing trends for commodities must be provided in the annexed template.
This consultation is part of the government's ongoing efforts to make the budgetary process more participatory, data-driven, and industry-responsive, ensuring that tax policy reforms align with India's growth and manufacturing objectives.
Official copy of the notification has been attached
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