The Foreign Investors' Chamber of Commerce and Industry (FICCI) praised the proposed FY 2024-25 budget as a comprehensive plan addressing economic challenges and fostering business growth.
In budget reaction on Thursday, FICCI particularly commended the proposed reduction in corporate tax rates for non-listed companies from 27.5 per cent to 25 per cent, subject to compliance with cash transaction requirements.
"This is expected to encourage private investment," said a statement from the chamber.
The chamber said the budget reflects a progressive approach to tax reform, noting measures like expanding the tax base, introducing electronic fiscal devices and promoting e-payment systems. These steps were seen as simplifying the tax regime and streamlining collection.
However, FICCI expressed worry about the lack of specific measures for automating tax, value-added tax (VAT) and customs administration.
Automation would increase efficiency and simplify tax collection, according to the statement.
Without such reforms, complexities around VAT credit and potential financial strain on businesses will persist, mentioned the chamber.
"Continuous reforms are necessary to ensure that VAT processes are streamlined, reducing the administrative burden on businesses and encouraging compliance, which will ultimately support economic growth."
FICCI believes that higher allocations in health and education would have further underscored the government's commitment to human capital development.
The statement said more funding in health and education would support better healthcare services and educational opportunities, eventually leading to a more skilled and healthy population, which is essential for sustainable development.
FICCI said the resource allocation for the digitalisation of the National Board of Revenue (NBR) is imperative in enhancing efficiency and transparency in tax administration.
Investments in digital infrastructure amounting to Tk 500 million have been allocated for this purpose which includes the implementation of advanced data analytics, electronic tax filing systems and improved digital interfaces for taxpayers.
This digital transformation is vital for achieving the budget's revenue targets and supporting overall economic development, said FICCI.
bdsmile@gmail.com