Foreign Investors' Chamber of Commerce and Industry (Ficci) said in its reaction that there were several unaddressed concerns in the proposed budget for the financial year 2023-24.
The trade body made the observation in a press release issued after Finance Minister AHM Mustafa Kamal placed the proposed national budget for FY24 before the parliament.
While Ficci appreciated the increased allocation for the power and energy sector, they expressed concern over perceived inadequacy of allocations for the health, agriculture and education sectors.
It stressed the need for changes in tax rate and amendments to be applied prospectively rather than retrospectively.
It also requested rationalization of definition of inputs in line with global best practices.
Ficci noted the absence of new incentives for local industry development and criticized imposition of additional VAT on certain local manufacturers such as smartphone manufacturers and software development companies.
It urged the government to consider their proposal for an integrated IT strategy, including introduction of e-invoicing, to enhance transparency in revenue collection.
It also expressed its disappointment that the concerns regarding the customs duty valuation process, in line with the Customs Valuation Rules, 2000, were not addressed in the proposed budget.
The trade body suggested that the government should focus on enhancing quality of spending, which could lead to increased efficiency and employment generation.
The trade body welcomed the increase in the initial threshold for tax-free income.
However, the Ficci raised concerns about adequacy of this increase considering the prevailing high inflationary trend.
It also supported the initiative to introduce an environmental surcharge for individuals owning multiple motor cars, although it suggested excluding corporate entities that require multiple vehicles for operational purposes.
