Making the regime less taxing: Pain points & what's on offer in Budget

Pain points

• Despite an 11.5% increase in tax revenues over the previous year, there will be no change in the tax-to-GDP ratio. The tax-to- GDP ratio for 2023-24 will be 11.1%, similar to 2022-23 (Revised Estimates)
• The collections from excise duties are expected to decline in 2023-24 compared to 2021-22. Excise duties will increase only 6%  compared to 2022-23, whereas Customs duty will register  11%  growth

What’s on offer

• New co-operatives commencing manufacturing activities till March 31, 2024, will get the benefit of a lower tax rate of 15% , currently available to new manufacturing companies
• Extension of tax benefits to funds relocating to IFSC, GIFT City till March 31, 2025. Eligibility for start-ups extended by one year to avail of tax benefits. Start-ups incorporated before April 1, 2024, can avail of tax benefits