Budget 2025: CTI recommends renaming Income Tax to National Development Cooperation Fund; Urges FM to focus on Middle Class and SME Traders

With the Union Budget 2025 just a few days away, the public is eager to see what changes it will bring to the Indian economy and how they would affect common man. The Chamber of Trade and Industry (CTI) sent a letter to Finance Minister Nirmala Sitharaman outlining their expectations for the upcoming Budget.

The letter which is written by Chairman Brajesh Goyal and President Subhash Khandelwal, urged the government to include relief for the middle class and small-scale traders in the Budget 2025.

In the letter, the apex traders’ group urged the government to rename Income Tax as ‘Rashtra Nirmaan Sahyog Nidhi’ (Nation Building Cooperation Fund). The organization stated that this would encourage taxpayers to pay more taxes to the government.

Furthermore, the trade industry body urged the government to contribute Rs.1,000 crore to the redevelopment of Delhi’s markets and industrial sectors. It also advocated that the Central Government to set up a Trade and Industry Development Board for traders and entrepreneurs.

The CTI advised that senior citizen taxpayers be given benefits of old-age for submitting taxes, such as social security and retirement benefits, in compliance with the regulations.

The organization advocated for raising the tax-free income cap to Rs.10 lakh to assist middle-class people. Furthermore, the traders advocated for lower interest rates on loans for middle and small-scale traders.

The 45-day payment rule and related penalty in income tax have caused several problems for traders and MSME participants, according to the authority. As a result, it urged for the revocation of this rule.

The CTI urged that the benefits of the new GST Amnesty scheme be made available to traders who had already submitted their taxes, interest rates, and penalties.

“In recent years, medical insurance premiums have risen significantly. This has caused numerous challenges for middle-class people in society,” the body stated.

The organization proposed that the income tax system be hybridized, similar to the GST framework, to allow for personal hearings. They also encouraged the government to rationalize the GST tax slabs, stating that many everyday and necessary items now attract tax in the 18% and 28% brackets.