The much-anticipated Union Budget 2025-26 is set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. As expectations mount, reports suggest that the Narendra Modi government may consider slashing income tax rates for individuals earning up to ₹15 lakh per annum. This move, if implemented, aims to provide much-needed relief to the middle class while boosting overall consumer spending and economic growth.
Tax Cuts Likely for Middle-Class Salaried Individuals
The government is reportedly evaluating measures to ease tax burdens for the salaried class. A potential expansion of the tax relief bracket could allow middle-income groups to have more disposable income, thereby increasing household consumption and stimulating demand across various sectors.
Healthcare & Fitness Industry Seeks Budgetary Support
With the growing emphasis on preventive healthcare and holistic wellness, industry experts are urging the government to introduce tax cuts and GST relief on healthcare products. An industry leader highlighted the need for a reduction in import duties on high-quality nutritional supplements to make them more affordable and accessible to consumers.
"We believe the upcoming budget holds significant potential to support the growth of the health and fitness industry. We hope for measures that reduce import duties on nutritional supplements, making them more accessible. With an increasing focus on self-care and immunity building, tax relief in this sector would greatly benefit consumers," said an expert from the dietary supplement industry.
GST Cut on Nutritional Supplements from 18% to 5%?
Currently, healthcare supplements attract an 18% GST, making them expensive for the average consumer. Experts are advocating for a GST reduction to 5% to drive affordability and wider accessibility.
"Nutrition is becoming mainstream, and more people are shifting towards healthier choices. This is fueling the growth of the dietary supplements market as individuals seek to bridge nutritional gaps. To support this momentum, we urge the government to reduce GST on healthcare supplements from 18% to 5% in the upcoming Union Budget 2025," the industry expert added.
Tax Incentives for Fitness & Wellness Businesses
Besides GST reductions, stakeholders are also calling for tax incentives for wellness and fitness businesses to encourage entrepreneurship and promote a healthier lifestyle among Indians.
"Providing tax incentives to wellness and fitness startups will stimulate growth in this sector. Making healthcare and fitness more affordable is not just beneficial for businesses but also aligns with the government’s healthcare agenda," the expert emphasized.
Expectations from Union Budget 2025
As February 1 approaches, various sectors await policy announcements that could shape the economic landscape in the coming fiscal year. Key expectations include:
- Income tax relief for individuals earning up to ₹15 lakh
- GST reduction on healthcare supplements from 18% to 5%
- Lower import duties on nutritional products
- Tax incentives for fitness and wellness businesses
The upcoming budget is expected to balance fiscal discipline with economic stimulus. Whether these tax reforms and industry demands will be met remains to be seen, but the focus on middle-class relief, healthcare, and wellness signals a shift toward sustainable economic growth.
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