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KCCI Calls for Tax Reforms and Infrastructure Boost

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  Published in Business and Finance on Wednesday, January 28th 2026 at 23:43 GMT by The New Indian Express
      Locales: Karnataka, INDIA

Bangalore, January 29th, 2026 - The Karnataka Chamber of Commerce and Industry (KCCI) today issued a strong call for comprehensive tax reforms and increased infrastructure investment in the upcoming Union Budget for 2026. KCCI President R. Suresh, addressing a packed press conference, outlined the chamber's recommendations, focusing on streamlining the Goods and Services Tax (GST) and fostering a more conducive environment for business growth in Karnataka and beyond.

The KCCI's proposals come at a crucial juncture as India navigates a complex global economic landscape. While the Indian economy has demonstrated resilience, the KCCI argues that unlocking its full potential requires a more efficient and predictable fiscal framework. The current tax structure, particularly GST, is perceived by many businesses - especially Small and Medium-sized Enterprises (SMEs) - as overly complex and burdensome.

GST: A Call for Radical Simplification

Suresh was emphatic in his assessment of the GST system. "The current GST framework, while a step in the right direction, has unfortunately become bogged down in procedural complexities," he explained. "The multiplicity of rates, intricate filing requirements, and frequent amendments have created a compliance nightmare for businesses, particularly SMEs. This administrative burden diverts resources away from core business activities and stifles innovation."

The KCCI is advocating for a significant simplification of GST rates, potentially moving towards a more unified structure with fewer brackets. They also propose a complete overhaul of the filing process, leveraging technology to automate returns and reduce the need for manual intervention. A key suggestion is the implementation of a standardized e-invoicing system across all businesses, coupled with a robust dispute resolution mechanism. The goal is to reduce the time and cost associated with GST compliance, allowing businesses to focus on growth and job creation. Experts suggest that a simplified GST could add as much as 2% to the nation's GDP.

Beyond Tax: Ease of Doing Business & Infrastructure Gaps

The KCCI's vision extends beyond just tax reform. Recognizing that a thriving economy requires a holistic approach, the chamber is urging the government to address lingering challenges related to the 'ease of doing business.' This includes reducing bureaucratic red tape, streamlining regulatory approvals, and promoting transparency in government processes. They specifically highlighted the need for a single-window clearance system for all business permits and licenses.

However, the KCCI stresses that improved processes are only effective if supported by adequate infrastructure. Karnataka, a key industrial and technology hub, is facing increasing strain on its existing infrastructure. The KCCI is calling for substantial investment in critical areas such as roads, ports, railways, and power generation. Specifically, they cite the need for upgrading port facilities to handle increased trade volumes, expanding the road network to improve connectivity, and ensuring a reliable and affordable power supply. Investment in these areas, the KCCI believes, will not only support existing businesses but also attract new investments.

Future-Proofing the Economy: Incentives for Sustainability & Skill Development

The KCCI also emphasized the importance of investing in the future. They are proposing incentives for businesses that invest in renewable energy sources, such as solar and wind power. This is seen as critical to India's commitment to sustainable development and reducing its carbon footprint. Furthermore, the chamber is advocating for increased funding for skill development initiatives, focusing on equipping the workforce with the skills needed for the jobs of tomorrow. This includes programs in areas such as artificial intelligence, data science, and advanced manufacturing.

"Fiscal stability and predictability are paramount for long-term investment," concluded Suresh. "The Union Budget should send a clear signal to the business community that the government is committed to creating a stable, predictable, and business-friendly environment." The KCCI's detailed proposals are expected to be submitted to the Ministry of Finance in the coming days, and the chamber hopes to engage in constructive dialogue with policymakers to shape a budget that will drive sustainable economic growth for Karnataka and India as a whole.