The Foreign Investors Chamber and Commerce and Industry (FICCI) has urged the government to withdraw the 1% import duty on capital machinery in the economic zones (EZs).
"The import duty is detrimental to foreign investment in economic zones in the country," said FICCI President Zaved Akhter during a press briefing on Monday (10 June).
The apex body of foreign investors held the press meeting to share its views on the proposed national budget for FY2024-25.
FICCI appreciated tax reforms in the proposed budget for FY2024-2025 to simplify the tax system.
However high Effective Tax Rates (ETR) remain a key concern for the industry, the chamber said.
It appreciated the 15% income tax rate for the private funds.
At the same time, the FICCI noted concerns about exempting public funds from taxation creating disparities between government and private sector employees.
FICIC raised concerns about the achievability of the National Board of Revenue's (NBR) tax collection target.
The removal of incentives from private EZs and High-tech Parks while keeping incentives for government EZs may erode investers confidence, the chamber further said.