New Delhi, Jan 29 (IANS) The UK India Business Council (UKIBC) on Thursday called for a simplified tax regime through exemptions on capital tax gains from foreign portfolio investors FPIs and other investor-friendly reforms from Union Budget 2026-27.

The business advisory body also called for strengthening the GIFT City proposition as a globally competitive financial services hub, simplified GST compliance, incentives and support for the telecom sector.

It urged the government “to provide increased access to global investors through expanding framework and allowing Indian companies to list equity shares on foreign stock exchange.”

“UKIBC looks forward to measures that strengthen India’s competitiveness as a global trade and investment with innovation, infrastructure development, and sustainable being the centre pillars for economic development and deepening UK–India collaboration,” the statement said.

The Budget presents an opportunity to build on recent reforms by enhancing policy certainty, easing business regulatory processes and compliance – thus supporting growth in across sectors such as financial services, manufacturing, clean energy, technology, and Global Capability Centres, it noted.

UKIBC shared hopes of the Budget setting a level-playing field allowing international companies to access the full benefits of FDI liberalisation.

Further, the policy advocacy firm called for a streamlined tax administration that reduces the compliance burden, as well as policies and incentives that facilitate increased adoption of clean energy or infrastructure pan-India.

According to another recent report, business leaders in India voiced strong demand for targeted tax incentives and manufacturing linked lower tax rate regime in anticipation of the Union Budget 2026 and the implementation of the New Income Tax Act.

Around 34 per cent of respondents called for the return of the manufacturing‑linked lower tax rate regime, as many income-tax incentives already expired or approached sunset.

Earlier a lower tax rate of 15 per cent was available to manufacturing units. Another major expectation was the overhaul of the dispute resolution mechanism under direct tax laws, including the introduction of mandatory timelines for the disposal of appeals.

—IANS

aar/na