FNCCI wants 3-month extension to submit financial report

Kathmandu, Jan. 5

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to extend the period to conduct the annual audit of the businesses and industries by three months.

Citing the obstacles caused by the coronavirus pandemic and three-and-a-half-month lockdown, a delegation of the business body led by its President Shekhar Golchha urged Minister for Finance Bishnu Prasad Paudel to give additional three-month window to submit the financial reports to the tax offices.

According to the existing law, the businesses must submit their financial details including the audit report to the tax administration within the six months after the end of the fiscal year.

Only nine days are left to end the first half of the current fiscal year – the deadline to submit the details. Incapability in submitting it to the tax offices within the deadline means paying fine.

The delegation also urged the Minister to postpone the period to pay the capital and interest of their bank loan.

Banks have been strict in terms of the repayment of the capital and interest of the loan which has created challenges to the busiensses especially the small and medium enterprieses, it said. “Many SMEs have not yet resumed their operations while the demand has not increased in and out of the country. Therefore, the mid-January deadline to repay the lond should be pushed forward for at least three months,” said the FNCCI.

According to it, the banks have blacklisted 2,800 businesses after mid-April last year.

The business body urged the FM to devise additional recovery package including tax discount and waive off of other charges, and market promotion.

FM Poudel said that he was serious aobut addressing the demands of the private sector and assured that their demands would be implemented as far as possible.

Published in The Rising Nepal daily on 6 January 2021.