Telangana Federation of Traders Backs Budget 2025
Traders of Telangana State Federation of Chambers of Commerce & Trade, Secunderabad, welcome the Budget 2025
February 02, 2025: On February 1, 2025, the traders of the Telangana State Federation of Chambers of Commerce & Trade, Secunderabad, expressed their positive reception of the Union Budget 2025 during a press meet held at Hotel Annapoorna Banquet Halls, near Paradise Circle. The gathering, led by Federation President Sri Ammanabolu Prakash, welcomed the budget’s emphasis on inclusive development, with a focus on the welfare of the poor, women, youth, and farmers.
One of the most notable announcements that received praise from the traders was the increase in the Income Tax exemption limit to Rs. 12 lakhs, providing significant relief to middle-class salaried individuals.
In a bid to simplify the tax structure, Sri Prakash proposed a more streamlined approach to individual Income Tax, recommending only three tax slabs:
Up to Rs. 10 lakhs: No Tax
Rs. 10 lakhs to Rs. 15 lakhs: 10% Tax
Rs. 15 lakhs to Rs. 20 lakhs: 20% Tax
Rs. 20 lakhs and above: 25% Tax
In addition to the tax relief, the traders thanked Prime Minister Narendra Modi and Finance Minister for the introduction of Goods and Services Tax (GST) and the faceless Income Tax Returns system, which have made business operations smoother. However, they requested further reforms, such as the simplification of GST slabs, tax rate reductions, low-interest loans, and enhanced credit facilities through schemes like MUDRA, CGT, and MSE. They also called for reduced interest rates on working capital and term loans, as well as an increased limit for collateral-free loans.
A key concern raised by the traders was the detrimental impact of online platforms engaging in predatory pricing, which, they argued, severely affects small traders. The Federation strongly proposed stricter regulations to protect local businesses from such unfair competition.
Further, the traders requested that health insurance be subsidized under the Ayushman Bharat scheme for traders and that small traders receive support in Employee State Insurance (ESI) and Provident Fund (PF) contributions. They also advocated for incentives for traders who support the “Vocal for Local” movement and those adopting digital payment methods.
The traders also highlighted the importance of the Indian service sector, which contributes around 55% to the GDP, and called for the withdrawal of the law imposing imprisonment for non-submission of TDS, with penalties being the preferred alternative. They also noted the issue of no deductions allowed for housing loan interest and principal repayment under tax laws.
Commenting on the Telangana State Government’s progressive initiatives, the Federation President praised Chief Minister Sri K. Chandrashekar Rao’s leadership, especially in transforming Hyderabad into an Electric Vehicle (EV) hub. The state’s removal of registration charges and road tax for EVs has made them more affordable, resulting in high sales. The state’s energy policy, which is recognized for its sustainability, was also applauded, especially after the successful signing of an MOU worth Rs. 1,82,000 Crores at the World Economic Forum in Davos.
In conclusion, the traders of Telangana expressed their hope that the government would continue to focus on the growth and protection of local businesses, making it easier for them to thrive in a rapidly evolving economic landscape.