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India needs to move towards a principle-based, technology-enabled, and trust-anchored tax system, which is simple, stable and digitised, aligning with its ambition of becoming a developed economy by 2047, Confederation of Indian Industry (CII) said.The industry body has submitted its set of tax reform suggestions for the next union budget for 2026-27, covering both direct and indirect taxes, were submitted to the revenue secretary, Arvind Shrivastava.It has called for time-bound dispute resolution, rationalised tax deduction at sources (TDS) regime, and digital customs transformation. "Tax simplification is not a concession; it is an investment in governance efficiency and when rules are clear and systems are digital, compliance becomes automatic and disputes become exceptional," CII director general Chandrajit Banerjee said. CII expressed deep appreciation for the strong reform momentum created by the government in recent years, which has led to a more predictable, technology-enabled, and growth-oriented tax environment. "The next stage of reform must ensure that taxation not only raises revenue efficiently but also acts as a catalyst for investment, innovation and competitiveness," Banerjee said. "The budget can be a pivot for a truly modern, transparent and globally benchmarked tax regime." He cited the example of GST 2.0 reforms, saying the buoyancy in revenues and the credibility of the fiscal-consolidation path have demonstrated that "prudence and progress can move together."Talking of specific demands, CII said India's tax administration must now shift from being dispute-driven to being dispute-preventive, with over 500,000 appeals pending before commissioners (appeals), involving almost ? 18 lakh crore of disputed demand.Live EventsCII recommended that all high-demand cases above ?100 crore be fast-tracked for resolution within one year through multiple virtual hearings and close CBDT monitoring."Parallel penalty proceedings should remain suspended until the main appeal is resolved, and draft orders should be shared for factual verification before finalisation," the chamber said. It also sought the revival of the Authority for Advance Rulings as an independent, quasi-judicial body headed by retired High Court judges, empowered to deliver binding rulings within six months and open to joint applications from industry associations for sector-wide clarity.Modernisation of customs, longer validity for advance rulings, and complete digitalisation of clearance systems were among its major indirect tax proposals.CII also proposed a phased roadmap toward paper-free customs by 2028. "If we now make our tax systems as simple and predictable as they are digital and fair, we will not only raise revenues more efficiently but also build the foundations of an economy that inspires confidence-both at home and abroad," Banerjee said.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) ( Originally published on Oct 31, 2025 ) Read More News onCII reformsViksit Bharat 2047rationalised TDStaxation reforms Indiataxpayer rights charter (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onCII reformsViksit Bharat 2047rationalised TDStaxation reforms Indiataxpayer rights charter(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
