Mumbai – The Federation of Associations of Maharashtra (FAM) has urged the government to prioritize policy continuity and a business-friendly environment in the upcoming Union Budget 2025. Frequent policy shifts create uncertainty, hampering trade and industry, said Jitendra Shah, President of FAM.
“It is essential to retain 98% of the current policy framework while introducing well-planned reforms. India must project governance stability to maintain investor confidence and global competitiveness,” Shah stated.
FAM emphasized the need for streamlined governance, reduced regulatory burdens, and a more efficient resource allocation strategy. The organization advocates for a simplified single-window clearance system, rationalized taxation policies, and industry-friendly compliance mechanisms to enhance the ease of doing business.
“Reforms should be strategic and well-justified, fostering business growth and aligning with India’s Viksit Bharat vision,” Shah added.
Key Budget Recommendations from FAM:
1. Reduction in Income Tax:
• With significant revenue generated from GST, FAM recommends a substantial reduction in income tax to provide relief to businesses and individuals.
• Proprietorship and partnership firms should be taxed at par with corporate tax rates to encourage entrepreneurship.
2. Special Loan Packages for MSMEs:
• The government should introduce low-interest loan packages for partnership and proprietorship firms to help them expand and boost economic growth.
3. GST Relief on Health & Life Insurance:
• GST on health and life insurance should either be nil or significantly reduced to encourage more people to secure insurance coverage.
4. Revival of Tax Incentives for Savings & Investments:
• The decline in household savings is a concern, and FAM suggests reinstating higher tax deductions for savings and investments, particularly benefiting the lower- and middle-class population.
FAM reaffirmed its commitment to collaborating with policymakers to ensure a stable and predictable economic environment that fosters trade and industry growth in Maharashtra.
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