The Foreign Investors' Chamber of Commerce and Industry (FICCI) has called for the withdrawal of the proposed 0.2% Advance Income Tax (AIT) on retail businesses for the fiscal year 2026-27, citing significant operational challenges.
In a review of the proposed budget, FICCI stated that relaxing regulations and investing in technology-driven reforms would boost investor confidence. The organization highlighted the government's strategic 'Three R' (Recovery, Restoration, and Reconstruction) framework and the digitalization of the tax system as steps that would improve the investment climate.
FICCI described the Finance Bill 2026 as a positive, progressive, and business-friendly initiative, noting that it would sustain trade, investment, and economic growth. However, the chamber expressed concerns about certain aspects of the country's business and investment environment.
