UKIBC calls for tax rationalisation, investor-friendly reforms in Budget 2026

Ahead of the Union Budget 2026-27, the UK India Business Council (UKIBC) has advocated for policy reforms to streamline taxation and boost foreign investment. High on its agenda are exemptions on capital gains taxes for foreign portfolio investors (FPIs) and measures to position GIFT City as a competitive global financial hub.

The council also emphasized simplifying GST compliance procedures, offering sector-specific incentives for telecom advancements, and expanding opportunities for Indian firms to list equity shares on international stock exchanges. These steps, it contends, would solidify India’s standing as a prime destination for trade and innovation.

In its statement, UKIBC highlighted the need for policies that foster sustainable development, infrastructure enhancements, and stronger UK-India economic partnerships. The upcoming Budget, it noted, should prioritize regulatory ease, tax predictability, and growth across finance, manufacturing, green energy, and technology sectors.

The council further urged equitable treatment for foreign businesses under FDI policies and called for administrative reforms to minimize tax-related burdens. Incentives to accelerate nationwide clean energy adoption were also recommended.

In parallel, business leaders across India are pushing for targeted tax relief and reinstating a manufacturing-linked tax rate reduction ahead of the new Income Tax Act implementation. Roughly 34% of industry respondents support reviving the 15% tax rate for manufacturing units—a policy previously discontinued—alongside reforms to expedite tax dispute resolutions. The latter proposal includes instituting mandatory deadlines for appeals processing.

(With inputs from IANS)