The Foreign Investors Chamber of Commerce and Industry expressed its concerns regarding the lack of allocation for the automation of Tax, VAT, and customs administration, as well as the need for higher allocations in health and education sectors in the proposed budget for the financial year 2024-25.

FICCI president Zaved Akhtar in his budget reaction said that the absence of specific directions or allocation for the automation could lead to inefficiencies in the tax collection process, potentially increasing the administrative burden on businesses and complicating VAT credit processes.

It said that resource allocation for the digitalization of the National Board of Revenue (NBR) was imperative in enhancing efficiency and transparency in tax administration.

Although there is an allocation for digital infrastructure amounting to 500 million BDT for the NBR, further resources may be needed to fully implement advanced data analytics, electronic tax filing systems, and improved digital interfaces for taxpayers, FICCI said.

While the budget allocates funds to the health and education sectors, there are concerns about the adequacy of these allocations, the chamber president said in a press release issued on Thursday.

Enhanced funding in these areas would support better healthcare services and educational opportunities, leading to a more skilled and healthy population, which is essential for sustainable development, the release said.

The proposed budget has been applauded by the chamber for its progressive and business-friendly measures aimed at reducing costs for consumers and introducing a predictable tax system.

Key highlights include the introduction of a prospective corporate tax rate, expected to facilitate accurate tax planning, and a proposal to reduce the corporate tax rate for non-stock exchange listed companies, likely to stimulate private investment.

Additionally, the budget’s focused on tax reforms, such as expanding the tax base, introducing electronic fiscal devices, and promoting e-payment systems, is praised for its potential to streamline tax collection and increase transparency, the release said.