Budget 2024: Tax Cuts and Import Policies to Boost Domestic Industries

tax cuts deductions

The government has prioritized domestic industries by reducing the tax on raw materials used in the production of goods. The goal of promoting domestic industries has led to a reduction in the tax on raw materials and internal tariffs for industries such as medicine, incense sticks, cloth, helmets, batteries, sanitary pads, cashew and almond processing, and spring mattress manufacturing.

In the upcoming budget, the finance minister has proposed an increase in the tax on certain raw materials and internal tariffs to protect domestic industries. The government has also made it easier for industries to obtain tax exemptions on raw materials by streamlining the process and eliminating the need for recommendations from various agencies.

The interest rate on loans obtained from foreign banks and financial institutions for the purpose of attracting foreign investment has been reduced. The government’s policy is to use a double-release model to increase the flow of imports from potential countries and to enter into agreements with those countries based on that model.

The finance minister’s budget includes a provision to amend the law to simplify trade and increase imports in accordance with international and regional agreements and commitments.

A provision has been made in the budget for information and communication technology industries to be exempt from tax on their profits. In addition, a provision has been made to provide tax relief to businesses in the event of a change in control due to an increase in their capacity. The government believes that this will benefit startups and venture capital.

A 15% reduction in the production of milk in cans with a capacity of more than 1,000 liters per day has been implemented. The limit for the value of exports that can be made by the exporter in the event that the exporter is unable to provide the necessary documents for obtaining foreign currency has been increased from $10,000 to $25,000. This is expected to benefit small and medium-sized export industries. The government has eliminated the production of pellets from wood and patpinga materials used for export.

The budget speech mentions the need to investigate and resolve the problems of tax determination in the context of disputes and the relationship between the mark and the carrier.

A provision has been made to exempt the price increase from scooters used by people with disabilities from the tax increase in the tax rate.

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