PHD Chamber seeks capital gains tax rationalisation, doing away with BCD on feedstock
Economic Times - Policy · Published 10 November 2026 · Last updated
The PHD Chamber of Commerce and Industry submitted pre-Budget recommendations for FY28 to the finance ministry, seeking tax rationalisation, BCD elimination on feedstock, and enhanced MSME credit limits.
Key points
- The PHD Chamber of Commerce and Industry urged the central government to abolish the long-term capital gains tax on equity investments ahead of the FY28 Budget.
- The industry chamber recommended halving the short-term capital gains tax to 10% and lowering securities transaction tax rates in its pre-Budget submissions to the finance ministry on Tuesday, November 10, 2026.
- The organization proposed improving equity financing access for businesses, particularly MSMEs, while eliminating the basic customs duty on rayon-grade wood pulp, LNG, naphtha, and heavy petroleum feedstocks.
- To promote domestic manufacturing in consumer durables and electronics, the chamber proposed increasing the basic customs duty to 20% on imported finished Completely Built Units of washing machines, dishwashers, vacuum cleaners, and robotic vacuum cleaners.
- The industry body called for extending the existing customs duty framework on steel scrap beyond March 2028 to lower manufacturing costs.
- The chamber sought increased loan ceilings under the Pradhan Mantri MUDRA Yojana, proposing limits of Rs 1 lakh under Shishu, Rs 10 lakh under Kishore, and Rs 20 lakh under Tarun and Tarun Plus categories.
- Another key recommendation urged extending the overdue period for classifying MSME loans as non-performing assets from 90 days to 180 days.
- Anil Gupta, President of PHDCCI, stated that strengthening manufacturing competitiveness requires a comprehensive approach to reducing critical industrial input costs.
Background
- The Pradhan Mantri MUDRA Yojana provides institutional credit to micro and small enterprises up to existing specified limits across Shishu, Kishore, and Tarun categories.
- The current regulatory framework classifies bank loans as non-performing assets after a default period of 90 days under standard banking norms.
Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: Economic Times - Policy