Chief monetary officers (CFOs) throughout sectors have described Budget 2026 as balanced and progressive, with no main detrimental surprises. The funds, they stated, laid a transparent emphasis on manufacturing-led progress, infrastructure build-out, less complicated taxation and decrease compliance friction. Whereas some issues have risen round Minimal Alternate Tax (MAT) changing into a ultimate tax, CFOs say the bigger message from the federal government is about predictability, competitiveness and ease of doing enterprise.
“This can be a very balanced Budget. In right this moment’s setting, if there may be nothing detrimental, that itself is a giant constructive. In fact, one may have requested for extra reforms or some leisure in long-term capital positive factors tax, and from a retail perspective, possibly extra measures to enhance consumption. But general, the bulletins are constructive and assist in constructing a extra secure platform for financial progress,” stated Anand Agarwal, CFO, V-Mart Retail.
CFOs additionally stated that the Budget’s push in direction of manufacturing this yr augurs nicely for job progress within the nation. The Union Finance Minister Nirmala Sitharaman introduced devoted proposals to scale up manufacturing in 7 strategic sectors together with biopharma, semiconductors, uncommon earth metals, electrical element manufacturing, capital items, chemical compounds and textiles.
“There’s a clear push in direction of manufacturing throughout sectors, and at any time when manufacturing will get a push, it mechanically creates employment alternatives,” stated Ashish Tiwari, CFO, Transport Company of India (TCI).
CFOs highlighted that a whole lot of structural reforms have already occurred during the last yr whether or not in GST, labour codes or different areas, so this Budget is extra about what comes subsequent.
“In the event you learn the Financial Survey, there’s a robust emphasis on the thought of an ‘entrepreneurial state’, the place the federal government begins considering like an entrepreneur—the way to take risks, the way to change into aggressive, the way to achieve world market share. The clear route is that India should develop not solely by companies but additionally by manufacturing,” stated Sanjeev Jha, CFO, Persol India.
CFOs reward lengthy overdue customs reforms
The Budget 2026 additionally moved to ease out ache factors of CFOs on the compliance entrance through proposing a single digital window that may host approvals from a number of authorities businesses for cargo clearances by the top of FY26. For items with no compliance necessities, customs will clear cargo instantly after on-line registration and obligation fee.
Furthermore, the Customs Built-in System (CIS) can be rolled out over two years as a unified platform for all customs processes. As well as, AI-enabled non-intrusive scanning can be expanded with the purpose of finally scanning each container at main ports.
Reforms to the customs course of have been considerably lengthy overdue, stated Anand, including that India might want to liberalise this a part of the regulatory framework very quickly particularly within the context of the type of free commerce agreements India is signing. Nonetheless, Anand awaits the superb print to see how it’s applied.
“The transfer in direction of automated customs clearance, together with automated scanning of all containers at main ports, use of AI, and an built-in customs system over the following two years. And approval of cargo clearance inside minutes and year-end processing can be a giant reform for customs,” stated Sneha Oberoi, CFO, Suzuki Bikes.
MAT Change raises issues for capital-intensive corporations
One of the crucial essential adjustments on the tax entrance for companies was the announcement round Minimal Alternate Tax (MAT), which turns into a ultimate tax from April 1, 2026. This implies corporations paying MAT will now not generate any contemporary MAT credit score going ahead.
The ultimate MAT charge can be diminished from 15% to 14%. Set-off of brought-forward MAT credit score can be allowed just for corporations choosing the brand new company tax regime, and solely as much as one-fourth of their tax legal responsibility below that regime. MAT credit score amassed as much as March 31, 2026 will stay out there, topic to this cover.
“Minimal Alternate Tax changing into ultimate, with credit not allowed to be carried ahead, is barely detrimental for corporates on the tax entrance. It is going to improve tax outflows, particularly for capital-intensive corporations the place investments and depreciation are excessive,” stated Aneel Gambhir, CFO, DTDC Categorical.
CFOs stated MAT changing into a ultimate tax was inevitable, because it closes a long-standing loophole and indicators a transfer in direction of a cleaner and leaner tax framework. “The federal government is clearly making an attempt to maneuver away from a number of exemptions and deductions and in direction of a less complicated and extra predictable tax framework,” Tiwari stated.
CFOs additionally praised different business measures within the Budget together with the proposed new freight corridors, deepening of the company bond markets and the chance infrastructure fund. Nonetheless, they stated rather a lot will rely upon execution.
“We’ve seen prior to now that many schemes get introduced, but typically they take time to be applied or the superb print doesn’t totally match the intent. From an intent perspective, it’s a step in the suitable route, but execution will determine how useful it really turns into,” stated Anand.
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