Increase tax rebate benefits for consumption expenditure in Budget: PHDCCI

Industry body PHDCCI sought increase in the tax rebate benefits for consumption expenditure, reduction in the cost of doing business and hassle free disbursement of loans at affordable rates

tax
Press Trust of India New Delhi
2 min read Last Updated : Jan 17 2023 | 8:13 PM IST

Industry body PHDCCI on Tuesday sought increase in the tax rebate benefits for consumption expenditure, reduction in the cost of doing business and hassle free disbursement of loans at affordable rates for businesses in the upcoming Union Budget 2023-24.

"At this juncture, to enhance the consumption in the economy, there is a need to increase the tax rebate benefits for consumption expenditure," the chamber suggested.

It highlighted that the tax rebate on purchase of self-occupied house which currently stands at Rs 2 lakh needs to be enhanced to Rs 5 lakh with the wider scope of consumption expenditure such as purchase of more than one house, purchase of car, along with other durables.

"Consumption expenditure rebate must be enhanced to Rs 5 lacs per annum. This will not only enhance the aggregate demand in the economy but also attract private investments, increase capacity utilization of firms and create enormous employment opportunities in the economy," PHD Chamber of Commerce and Industry stated.

As part of its pre-Budget proposals, the chamber also suggested that the government should focus on reducing the cost of doing business, including the costs of capital, power, logistics, land and labour.

Arguing that access to finance is a major roadblock being faced by the MSMEs impacting their competitiveness and growth, PHDCCI said the current banking norms result in high primary security and collateral demanded by banks for the MSMEs.

Focus of the government should be on hassle-free disbursements of loans at affordable rates of interest for the businesses vis-a-vis enhanced liquidity for micro, small and medium enterprises (MSMEs), suggested the chamber.

Finance Minister Nirmala Sitharaman is scheduled to present the Budget on February 1.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Budget 2023Loan disbursalsBudget

First Published: Jan 17 2023 | 8:13 PM IST

Next Story