Govt asked to create favourable business environment

Kathmandu, Aug. 7: The private sector on Tuesday blamed the government for its inability in creating business and investment friendly environment in the country despite political stability.

The three levels of governance system has made the business operation more complex, and the businessmen across the country are facing challenges rather than reaping the benefits in the federal setup of the country, they said at the National Meeting of the District and Municipal Chambers of Commerce and Industries under the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Birgunj of Parsa district on Tuesday.

The meeting that witnessed the participation of more than 300 businessmen from 63 district and municipal CCIs urged former Prime Minister Pushpa Kamal Dahal Prachanda and Minister for Industry, Commerce and Supplies Matrika Yadav to create favourable business climate.

None of the governments at the federal, provincial and local level are concerned about facilitating the business establishment and operation in their respective area but are spearheaded about increasing taxes haphazardly, said Bhawani Rana, President of the FNCCI.

“Likewise, the banks are uninterruptedly increasing the interest rates which has overburdened us financially,” said Kishor Pradhan, Vice-President (Industry and Commerce) of the FNCCI.

The banks have increased the interest rate of loan from 5-8 per cent to 12-15 per cent. The government should interfare in it and bar the banks and financial institutions from charging more than 8 per cent interest on loan mobilisation, said Pradhan.

The businessmen stressed on the cooperation and coordination between the local bodies and local chamber of commerce and industries while determining the tax rates.

They said that all the governments and their agencies should work the goods preduced in Nepal, local CCI representatives should be included in the market monitoring activities, and the provision of Rs. 3 million security to import goods from India shold be removed.

The meeting suggested that industries based on local raw materials, tourism infrastructure, sanitation and waste management, water supply, park development, construction and operation of national exhibition and sales centre and commercial agriculture could be the areas of public-private-partnership (PPP).

Prachanda said that the businessmen’s demand such as loan at concessional rate, simple business registration process and easy taxation system were relevant and the government would work to facilitate them in those areas.

“To achieve national prosperity, there should be the security of national capital and cooperation between the government and private sector. When the business climate gets better, foreign investment would automatically be attracted,” he said.

Minister Yadav emphasized on reducing the trade deficit and said that government would facilitate the industries in every possible ways.

“I am ready to sit with you to discuss the challenges that businesses are facing and find out the solution. The business registration would soon be made one-door,” he said.

President of Birgunj Chamber of Commerce and Industry Om Prakash Sharma recommended reconstructing the Miteri Bridge at Nepal-India border and creating road infrastructure capable enough to allow the movement of 400 metric tons container trucks.

Published in The Rising Nepal daily on 8 August 2018.