Trust-based tax administration at core of Finance Bill 2026, says FM Sitharaman

Addressing the House, the Minister emphasized that the government is steering the nation through a new era of economic governance characterized by systemic clarity rather than reactive measures.

Sitharaman stated that "India is moving forward with reform not out of compulsion, which is what has happened earlier, but out of conviction, with clarity, confidence and commitment." The Minister further remarked that the nation "is riding on the reform express under the leadership of Hon'ble PM Shri Narendra Modi," framing the Finance Bill 2026-27 around five foundational principles.

These include enhancing the "ease of living for common citizens and ease of doing business," a move specifically designed to ensure that "people are not burdened by compliances, permits, quotas, and licenses for legitimate activities."

The Minister detailed the bill's focus on "empowering MSMEs, farmers, and cooperatives, which are at the heart of employment generation, production, and overall development." This empowerment is expected to come through specific measures that "improve liquidity and reduce compliance burden."

Beyond domestic support, Sitharaman highlighted the objective of "making India a stronger global business hub by bringing clarity in taxation" for critical sectors like digital infrastructure, electronics manufacturing, and nuclear energy.

She also highlighted the importance of "enabling seamless trade facilitation" through comprehensive customs reforms to simplify cross-border processes.

The Lok Sabha passed The Finance Bill, 2026. The Bill gives effect to the financial proposals of the Central Government for the financial year 2026-2027. The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by Select Committee' taken up for further consideration and passing in Lok Sabha.

The Finance minister also noted that in the last six-year period, 2019-20 to 2024-25, the cumulative utilization of cesses has exceeded the collection to Rs 15.14 lakh crore.

"Rs 15.97 lakh crore have been sent to the states under various schemes. So, more than what is collected under cesses and surcharges is being spent. Similarly, health and education cess, Rs 74,000 crore extra has been spent over and above what has been collected under cesses and education health cess. Rs 7.03 lakh crore was collected, and that is between 2014-15 to 2026-27. Against this, the total utilization stands at Rs 7.77 lakh crore," she said. (ANI)