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Need tax resolution scheme for corporates, industry: Sunil Bharti Mittal

Says government must launch Vivad se Vishwas scheme for corporates to release locked funds, backs a uniform 25% tax rate and 'one nation, one election' for economic efficiency Subhayan Chakraborty Delhi The government should introduce a Vivad se Vishwas-style tax scheme for India Inc. to free up the 'lakhs of crores of rupees' currently tied up in corporate litigation, Bharti Enterprises Chairman Sunil Bharti Mittal said on Thursday. Speaking at the CII Annual Business Summit, Mittal also said it was surprising that many corporates had not shifted to the 25 per cent corporate tax rate. Introduced by the government in 2024 to resolve pending appeals in income tax disputes, the VSV scheme should be reimagined for corporate India so that the Centre can secure 'very large amounts of money that can be put to good use now', Mittal stressed. 'Maybe the government will win in 10 years' time and that money may become available to it then. Why not settle it now on the lines of the VSV?' he said, adding that such a step would release the industry from past litigations and allow it to focus on the future. Mittal's comments carry significance given that Bharti Airtel and Bharti Hexacom continue efforts to reduce the ₹43,980 crore in adjusted gross revenue (AGR) dues owed to the Centre. As part of a broader tax reform initiated in 2016–17, the Centre had, through the 2019–20 Budget, extended the simplified 25 per cent rate—provided exemptions were foregone—to all domestic companies with an annual turnover of up to ₹400 crore, up from ₹250 crore. The policy was aimed at benefiting approximately 99.3 per cent of Indian firms, but many have yet to transition to the new regime. 'Let's also get rid of the old fascination with those exemptions and move on to a simplified flat 25 per cent tax rate,' Mittal said. Mittal also argued that India loses valuable economic opportunities during election months each year and called on industry to support the idea of 'one nation, one election'. Need to be reasonable on FTAs On trade, Mittal pointed out that ongoing bilateral talks for free trade agreements (FTAs) with the United States, European Union, and Saudi Arabia were in advanced stages. He urged industry associations not to demand provisions that could complicate the negotiations. 'We should have a reasonable outcome for those markets to open up for Indian companies, as we open our markets,' he said. At the same time, he strongly advocated for import substitution, arguing that every rupee of import saved by manufacturing domestically results in an equal amount of foreign exchange saved. Digital opportunity amid migration barriers Mittal also noted that global openness to immigration was shrinking, despite ageing populations worldwide. 'Our young people, our engineers, our trained professionals—nurses, doctors, teachers—are not going to get as easy access as they've had in the past. Thankfully, the world has moved to a digital medium. From the comfort of their homes in cities or villages, they can now serve the globe,' he said. Focus on job creation and regional potential Addressing a large audience of industry leaders, Mittal emphasised the need to prioritise job creation. 'One and a half million engineers are being produced in the country every year—more than the US and China put together. All of them need to be harnessed. This energy needs to be harnessed,' he said. He also urged industry to invest more in tapping the hydrocarbon potential of India's North-East.