Apex business chamber FICCI has outlined its key expectations from the upcoming Union Budget 2026-2027. These expectations focus on direct taxes and customs collections processes. FICCI emphasizes the need for a reduction in the pendency of appeal cases and advocates for tax neutrality for fast-track mergers.
The reduction of pendency before the Commissioner of Income Tax, Appeals is crucial for the success of the new Faceless Appeal system. FICCI points out that there are currently around 5.4 lakh cases pending before CIT(A), involving a substantial amount of Rs 18.16 lakh crore.
FICCI’s wishlist also includes the rationalization of provisions to enable obtaining a full stay of demand during the appeal process. This, they believe, will help unlock amounts tied up in litigation and ease working capital blockage for taxpayers without negatively impacting revenue collection.
The business chamber further seeks clarity on the tax neutrality of fast-track demergers. They argue that this clarity will facilitate demergers in small-sized companies and intra-group restructuring within a shorter timeframe. Additionally, FICCI calls for the restoration of the Associated Enterprise definition in the new Act to ensure continuity of tax policy and provide certainty on transfer pricing compliance.
FICCI’s expectations on indirect taxes involve the constitution of more offices of the Customs Authority for Advance Rulings (AAR). They suggest expanding these offices to enhance trade certainty, reduce compliance burden, and lower litigation on customs matters.
Lastly, FICCI urges the government to introduce facilitation measures for importers and exporters by centralizing Trade Notices in a real-time web database. This move aims to enhance transparency, streamline access, and ensure uniform assessment practices across all customs ports.
