Union Minister for Finance, Nirmala Sitharaman, presided over crucial pre-budget consultations with Finance Ministers from various states and Union Territories (UTs) to gather their insights and suggestions for the upcoming Union Budget 2024-25.
The meeting, held today, saw the participation of Union Minister of State for Finance Pankaj Chaudhary, alongside a notable gathering of Chief Ministers, Deputy Chief Ministers, State Finance Ministers, and senior officials from both state governments and the Union Government.
Among the dignitaries present were Chief Ministers from Goa, Meghalaya, Mizoram, Nagaland, and Sikkim, while Deputy Chief Ministers from Bihar, Madhya Pradesh, Odisha, Rajasthan, and Telangana also contributed to the deliberations.
The discussion aimed to incorporate diverse perspectives and priorities from across the country into the forthcoming budgetary plans.
53rd GST Council Meeting; Addressing Key Taxation Issues
Simultaneously, the 53rd meeting of the Goods and Services Tax (GST) Council, scheduled for the same day, convened to address critical issues concerning taxation.
Notably, the Council, which includes Finance Ministers from states and UTs, focused on pertinent topics such as tax rates applicable to fertilizers and chemicals used in their production, as well as taxation policies related to online gaming.
Sources within the Council indicated that discussions would likely encompass proposals to amend retrospective tax demands, potential exemptions for reinsurance, and adjustments to GST rates on raw materials essential for fertilizer manufacturing.
Currently, the government taxes fertilizers at a five percent rate under GST, while it imposes a higher tax of 18 percent on inputs such as Sulphuric Acid and Ammonia, a structure that stakeholders aim to streamline to rectify market distortions.
Furthermore, the Council is poised to consider recommendations from the Standing Committee on Chemicals and Fertilizers, which advocates for reducing GST rates on essential raw materials.
This initiative aims to strengthen domestic production and make these materials more affordable.
In addition to these pivotal matters, deliberations may extend to revising GST on Maintenance, Repair, and Operations (MRO) services availed by foreign airlines operating in India.
Currently taxed at 18 percent, stakeholders have proposed revisiting this rate to boost competitiveness and operational efficiency within the aviation sector.
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