National Chamber welcomes Budget; looks for implementation

The National Chamber of Commerce (NCCSL), in a statement, said it welcomes Budget 2022 but looks forward to effective implementation.

“National Chamber recognises the efforts of the Government to signal to all the stakeholders that they are on a path towards managing fiscal space by estimating the Budget deficit for 2022 in single-digit (8.8%) compared to estimated double-digit (11.1%) during 2021,” the statement said. 

It noted the Government’s one-off revenue proposals such as Surcharge Tax of 25% on persons and companies with taxable income over Rs. 2 billion for the year of assessment 2020/21 and increase in VAT on Financial Services by 3% for 2022 and other revenue proposals such as introduction of Social Security Contribution at 2.5% on turnover and implementation of Special Goods and Services Tax, etc.

NCCSL said it appreciates the Government efforts taken to enhance the social safety net which is of paramount importance to sustain the livelihood of lowest income earners of the country through expenditure proposals such as rural development projects, ‘Vari Saubhagya’, development of local government divisions, rural livelihood development, water for all, home shops, home economy, modernisation of plantation sector, development of schools, development for rural houses, relief for the micro, small and medium-scale entrepreneurs etc.

The National Chamber is hopeful that careful regulatory and policy measures would be introduced to manage the impact of the one-off revenue proposals, preventing spill-over effects to the national economy, which may restrict lending capacity of financial institutions and ability to expand the capacity of large business entities.

“We emphasise on the importance of careful administration and meaningful allocation of significant expenditure proposals which are expected to improve living conditions of lower-income earners and improving SMEs of the country, which has attracted special emphasis under National Chamber Vision. We observe foreign currency scarcity, tangible efforts to improve export orientation and attraction of much needed FDI could have been addressed better in the Budget proposals,” NCCSL said.

It expects efficient monitoring and disbursement of budgetary allocations would help to improve the GDP growth of the country in the medium-term, allowing the Government to divert attention to addressing significant challenges such as debt refinancing, enhancing availability of foreign currency and loosening import restrictions etc., gradually.