The Foreign Investors Chamber of Commerce and Industry has expressed concerns over lack of allocation or specific directions for the automation of tax, value-added tax and customs administration in the proposed budget for the 2024-25 financial year.
The FICCI in its post-budget reaction on June 6 said that automation in these areas was crucial to increasing efficiency and simplifying the tax collection process.
The trade body emphasised that the absence of reforms for automating tax processes meant that complexities related to VAT credit and potential financial strain on businesses would persist.
Continued reforms are necessary to streamline VAT processes, reduce administrative burdens on businesses, and encourage compliance, ultimately supporting economic growth, it said.
The organisation said that the reduction in the corporate tax rate for non-listed companies from 27.5 per cent to 25 per cent was expected to encourage private investment.
It also stated that the focus on tax reforms that simplify and clarify the tax regime, including expanding the tax base by 25 per cent, introducing electronic fiscal devices, and promoting e-payment systems, is commendable.
鈥楾hese measures aim to streamline tax collection and reduce costs, with the number of taxpayers expected to increase from 2 million to 2.5 million, creating a more business-friendly environment and ensuring greater tax system transparency,鈥� FICCI said in its reaction.
The organisation said that higher allocations in health and education would have further underscored the government鈥檚 commitment to human capital development.
鈥業nstead of allocation of 8 per cent of the total budget to health sector, and 12 per cent allocations to the education sector, 10 per cent for health and 15 per cent for education would be more appropriate,鈥� it said.
