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The Foreign Investors Chamber of Commerce and Industry (FICCI) has welcomed the national budget for the fiscal year 2024-25 and emphasized tax reform and digital transformation of NBR.
FICCI President Zaved Akhtar in a statement said, “We commend the government’s efforts in crafting a comprehensive fiscal plan that addresses critical economic challenges while fostering a conducive environment for business growth.”
He said with a keen focus on containing inflation, reducing aggregate demand, and nurturing the supply side of the market, this budget lays a strong foundation for stabilizing the economy.
The budget outlines several measures to control inflation and stabilize the economy, including tightening monetary policy by raising interest rates to 8.5 per cent. The Standing Lending Facility (SLF) and Standing Deposit Facility (SDF) rates have been set at 10 per cent and 7 per cent, respectively, to curb inflation by reducing money supply and encouraging savings, Zaved said in the statement.
Additionally, substantial investments aim to boost agricultural productivity by 20 per cent and industrial output by 15 per cent through technological advancements and infrastructural improvements. This is expected to balance demand and supply, thereby stabilizing the economy, he said.
The chamber appreciates the following proposals made in the proposed budget. However, “We believe that there are some issues which should be addressed.”
A standout feature of this budget is its progressive business-friendly approach, focusing on reducing costs for consumers. The emphasis on a predictable tax system is appreciated, meeting long-standing demands.
The introduction of a prospective corporate tax rate enables accurate tax planning for businesses. The proposal to reduce the corporate tax rate for companies not listed on the stock exchange from 27.5 per cent to 25 per cent, subject to compliance with cash transaction conditions, is commendable. It is expected that the proposal to reduce the tax rate will encourage private investment.