Highway developers seek 10 policy changes in Budget 2023-24

In a pre-budget meeting with Finance Ministry, highway developers have sought 10 crucial changes in the direct tax regime to boost India’s infrastructure, an official who attended the meeting told Business Today TV.

The official further said that Finance Act, 2020 has introduced section 10 (23FE) to exempt income received by specified investors - mainly sovereign wealth funds (SWF) on the funds invested in infra firms. “There is an urgent need to extend the benefit to Indian funds, investor or holding companies. Domestic funds should be given equal opportunity to compete with SWF’s for investing in the infra sector on the principle of natural justice and fair treatment”, he added.

Another area of concern highlighted relates to Section 79 of the Income Tax Act, which provides for carry forward and set-off of losses where a change in shareholding has taken place in the previous year.

“We have requested the government that losses from the specified business mentioned in section 35AD of the Income Tax act should be excluded from the purview of section 79 of the IT Act as highway builders have a tax exposure of Rs 37,500 crore in this regard”, the official said.

In addition, the developers have also demanded that the lower tax rates of 15-22 per cent and should be extended to firms, limited liability partnerships among others to bring them on par with companies.

Meanwhile, the budgetary allocation for the Ministry of Road Transport and Highways is likely to be around Rs 2,50,000 crore for fiscal 2023-24. The ministry is estimated to have spent around Rs 1,99,108 crore in the current fiscal, which is 52 per cent higher than the revised estimates for 2021-22.

Also read: Budget 2023: Banks want FDs to become tax-free to compete with mutual funds, insurance products

Also read: Direct tax collections grow 24.26% to Rs 8.77 lakh cr in FY23: Finance Ministry