Budget focusses on empowering and honouring honest taxpayers through a Trust-Based System” ~ Mr Arvind Shrivastava, Secretary, Department of Revenue, Ministry of Finance at CII Post Budget interactive session  

“The Union Budget 2026-27 proposals are designed to convert the vision of a taxpayer-friendly system into practical, operational measures that empower businesses to manage their tax affairs independently and transparently through a trust-based system,” said Mr Arvind Shrivastava, Secretary, Department of Revenue, Ministry of Finance, addressing the session on Detailed Tax Provisions and Analysis at the Union Budget 2026-27 Post Budget Interactive Session with Ministry of Finance organized by the Confederation of Indian Industry (CII) at New Delhi today.

The Secretary highlighted that in direct taxation, several key reforms have been introduced to enhance taxpayer control. The timeline for revising income tax returns has been extended by quarter, allowing taxpayers time to correct errors voluntarily without intervention from the department. Additionally, the system of updated returns, which has already seen widespread adoption, enables taxpayers to report new or missing information over a four-year period. “These measures ensure that taxpayers can proactively manage their liabilities, reduce disputes, and retain greater control over their assessments”, he noted.  

On the customs front, he mentioned, the government is moving from transaction-based rules to entity-based systems. “Accredited Economic Operators (AEOs) and eligible manufacturers will receive preferential treatment, such as electronic sealing of exports and simplified customs procedures. This approach is intended to reduce physical inspections, enhance efficiency while streamlining compliance for businesses”, he stated.  

The Secretary also emphasized the importance of transparency and clear communication in implementing these reforms. He urged both the industry and taxpayers to avoid speculation around budget proposals, noting that “The government has ensured that proposals are drafted with clarity and department is actively supplementing and clarifying

measures wherever needed. Constructive engagement will ensure that the intent and spirit of these reforms is fully realized on the ground”.

Highlighting the government’s focus on supporting key industries and simplifying compliance for trade and manufacturing, Mr Vivek Chaturvedi, Chairman, CBIC stated, “We have carefully analyzed sector-specific requirements and introduced exemptions and incentives in areas like pharmaceuticals, defence manufacturing and collaborative ventures to strengthen supply chains and domestic capabilities. By expanding the AEO program and moving toward entity-based systems, along with streamlining duties and transactions, we aim to make trade smoother, reduce inspections and make it easier for manufacturers to compete globally.” He underscored the broader goal, saying, “All these measures are intended to create a transparent, efficient, and investor-friendly environment while addressing long-standing structural challenges across sectors.”

Mr Rajiv Memani, President, CII mentioned that the taxation proposals in this Budget mark a decisive shift in how India is positioning itself in the global investment landscape. What stands out is that tax policy is no longer being viewed merely as a revenue instrument, but as a strategic lever to attract global business, integrate into global value chains, and anchor long-term investment in India. From CII’s perspective, this is a decisive step forward. The emphasis on certainty, stability and competitiveness aligns closely with what global investors look for today.

“CII welcomes the continued engagement between the tax administration and stakeholders. The consultative processes adopted in recent years have significantly improved trust and transparency. This has helped in reducing disputes and improving voluntary compliance. Going forward, CII believes that continued focus on certainty, dispute resolution, and ease of compliance will be key to sustaining investor confidence and supporting long-term growth”, noted Mr Chandrajit Banerjee, Director General, CII.  

“Industry strongly supports the direction set out in the Budget and recognises the complexity of the reforms underway. We see this phase as an opportunity to further strengthen a trust-based, predictable and non-adversarial tax and trade administration. From the perspective of ease of doing business, the Budget sends a strong and consistent

signal across both direct and indirect taxes”, mentioned Mr Piruz Khambatta, Chairman, CII National Committee on Taxation, Group Chairman, Rasna Private Limited.

02 February 2026,
New Delhi