- VAT increase on raw materials for large industries will raise production costs.
- VAT hike on construction materials will increase costs in housing and construction.
- BCI President criticizes budget for focusing too much on revenue collection.
- Heavy reliance on corporate and personal income taxes noted.
- No clear roadmap for improving government revenue or expanding tax net.
- Budget aims to reduce inflation, be business-friendly, and increase employment, but achieving these goals is challenging.
- VAT increase on raw materials will make reducing inflation difficult.
- Industrial policy following IMF directives may harm industries.
- High costs due to fuel prices, bank loan interest rates, and inadequate fuel supply.
- Export sector may lose competitiveness due to reduced cash incentives.
- No fiscal support to replace cash incentives in the budget.
- VAT increase on cotton and man-made fiber will affect local spinning mills.
- Duties on steel industry raw materials raised from 15% to 25%.
- VAT on cement industry raw materials increased from 5% to 15%.
- Turnover tax raised from 0.6% to 1%, impacting industries, especially CMSME sector.
- VAT on e-commerce sales increased from 5% to 15%, affecting SME entrepreneurs.
- Proposed budget includes allocations for young and women entrepreneurs.
- Plans to formalize SME sector and increase digital loan disbursement.
Source: daily-sun.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
