The Overseas Investors Chamber of Commerce and Industry (OICCI) has submitted budget proposals to the government for fiscal year 2025-26. They have urged the government to raise the income exemption limit from Rs 600,000 to Rs 1.2 million annually. This change would benefit individuals with lower incomes by increasing their tax-free earnings.
In addition, the OICCI has suggested reducing the sales tax on goods from 18% to 17%, with an annual reduction to 15%. This proposal aims to ease the financial burden on consumers and align with regional tax averages. The Chamber also requested the government to gradually remove the super tax over the next three years.
The OICCI emphasized the importance of reforms to improve the country’s tax-to-GDP ratio, targeting a 14% increase. They also proposed lowering corporate tax rates to 28% for fiscal year 2025-26, with annual reductions over the next five years. This plan would help businesses grow and thrive under a more competitive tax regime.
Lastly, the OICCI called for measures to bring key sectors like agriculture, real estate, and retail trade into the formal tax system. They also pushed for stricter actions against the illegal cigarette trade to boost tax compliance and revenue.