Kathmandu, May 31
Private sector has welcomed the budget of
the upcoming Fiscal Year 2022/23 terming it 'positive' for the programmes it has
incorporated for the development of agriculture, promotion of private sector
and domestic industry, and youth employment.
The Federation of Nepalese Chambers of
Commerce and Industry (FNCCI) said that reducing imports of agricultural goods by
30 per cent and supporting agri-business will help in commercialization of the
sector.
It said it would forge cooperation with the
government in export promotion and import substitution and demanded for the
early implementation of the provision to provide seed capital to the startup
business which was announced by the budget of the current fiscal year 2021/22.
The FNCCI also stated that it would
mobilise its provincial chapters and entire network to make the operation of
business incubation in all provinces a success. The budget has announced to
provide concessional loan to the youth and returnee migrants through a
challenge fund and expand the knowledge-based business through the operation of
business incubation centre.
"The provision to establish herbs
processing industry at provincial level has elated the entrepreneurs in the
sector," read a statement issued by the FNCCI.
Likewise, it sought assurance for the full
operation of the Special Economic Zones in Bhairahawa and Simara and completion
of the Integrated Check Post in Nepalgunj at Nepal-India border and initiate
ICP construction in Bhairahawa.
The issue of launching a decade of
development and prosperity 2022-2032 is an important step, it said while
expressing hope that the 8 per cent cash grant on the export of clinker,
cement, steel, footwear, processed water, and IT-based services as well as
business process outsourcing will further help to promote the domestic
industry. Meanwhile, the FNCCI demanded that the provision to differentiate the
customs duty of the raw materials and finished goods should be implemented
immediately.
It urged the government to streamline the
cash grant with a simplified process.
Similarly, the business body welcomed the
step to upgrade the existing labs to the international level. It also
recommended the government to remove the limit of 100 units of apartments
selling 20 per cent units to the foreign citizens. FNCCI praised the government
announcement to review the limit on land for the industries. It demanded to
provide discount on electricity to the small and medium enterprises as well.
However, it said that achieving 8 per cent
growth rate is challenging since the country is facing liquidity crisis and
external sector pressure at the same time. Likewise, the revenue target is also
unreal, said the FNCCI.
Meanwhile, the
Federation of Export Entrepreneurs Nepal (FEEN) said that the budget has
included their suggestions like establishing international exhibition centre,
organising international fairs for export promotion, providing cash incentives
on the exports of cement, processed water, steel, footwear and clinker, and upgrading
Nepal's labs.
Likewise,
providing concessions to the production and processing of cardamom, ginger,
herbs and turmeric, establishing herb processing centre, providing government
land for 50 years to industry to attract the Foreign Direct Investment, and
making the economic diplomacy more effective have also been included in the
budget.
The FEEN has
welcomed these provisions saying that 'they will help in export promotion'.
However, it doubted the early and earnest implementation of these provisions.
The other day,
Nepal Chamber of Commerce (NCC) had welcomed the budget for its programmes on
agriculture, export promotion and support to the domestic industry.
It said that the
target of Rs. 256 billion internal borrowing will further pressurize the
liquidity crisis and interest rate.
"The
revision in the slabs of income tax is a welcome step. But the married persons should
also be differentiated with a person with more family members," said the
NCC in a statement.
According to the
business body, provision to allow insurance companies to invest certain per
cent of their profits in infrastructure, and paying coronavirys insurance
liability by issuing special bond are good initiatives.
It welcomed the
salary increment for the government employees, pension to farmers, apartment to
urban poor and nutrition allowance to new mothers.
Published in The Rising Nepal daily on 1 June 2022.
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