The Indian Finance Minister presented the Union Budget for 2022-23 (Budget 2022) on 1 February 2022. With India’s current-year economic growth estimated to be 9.2%, Budget 2022 focuses on infrastructure spending with an aim to boost growth amid continued disruption from the COVID-19 pandemic. It also makes a strong pivot toward the digital economy, climate change, clean energy transition, and ease of living.
The Finance Minister has continued with the underlying theme of seeking to provide a stable and predictable tax regime to promote voluntary compliance, to reduce litigation, while keeping the overall tax structure unchanged.
This Insight highlights some key Budget 2022 tax proposals affecting foreign investors and multinational enterprises doing business in India. Budget 2022 proposals would take effect once both houses of Parliament pass it and Presidential assent is accorded.