NCC suggests accepting transaction price at customs

Kathmandu, Feb. 17

Nepal Chamber of Commerce (NCC) has suggested recognising transaction price and Letter of Credit (LC) at the customs point.

In a meeting with Director General of the Department of Revenue Investigation (DRI), Prakash Poudel on Thursday, the business body urged to accept the transaction price or LC in import-export business.

The reference price set at the customs has created problems in the Value Added Tax (VAT), said NCC President, Rajendra Malla. “The reference price has affected the entire revenue collection and helped in the proliferation of Hundi. It has also added complexities in issuing bills and receipts,” he added.

Malla urged Poudel to make the revenue monitoring system one-door, well-managed and business-friendly.

NCC has also requested the DRI to control illegal activities at the customs points, offer reward to the informants and punishment to wrong informers to make the border trade more effective. It would be better to impose fines instead of jailing in cases of revenue frauds and leakages, NCC suggested.

According to a statement issued by NCC, President Malla said that the recent provision imposed by the Nepal Rastra Bank to submit all details while making transactions above Rs. 700,000 is impractical.

Likewise, NCC suggested facilitating the trade in a way it would discourage import and promote export business. It emphasised on implementing full automation at the custom administration.

In response, DG Poudel expressed his commitment for trade facilitation.

“I am positive to the suggestions submitted by the NCC. The government will cooperate with the private sector on it,” he said.

Published in The Rising Nepal daily on 18 February 2022.