Kathmandu, May 10
The
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has submitted
suggestions for the upcoming budget of the Fiscal Year 2023/24 requesting
priority to liquidity management and credit expansion, remittance enhancement,
increase in capital expenditure, cut in unproductive expenses, and good
governance.
Speaking
at a programme organised to hand over the suggestions to the Finance Minister, Dr.
Prakash Sharan Mahat, FNCCI President, Chandra Prasad Dhakal, stated that some structural
reforms are necessary to lift the economy from the current recession and
sustain a long-term growth.
According
to him, policy reforms will also improve revenue administration and collection.
"During the implementation of various legal provisions related to revenue,
entrepreneurs are facing policy and procedural problems. In such a situation,
restructuring of tax administration, use of technology and adjustment of rates
are necessary along with the creation of a unified law," said Dhakal.
He
stressed on a need to conduct a special programme to promote domestic and
foreign investment. "About Rs. 20 billion foreign investments come to
Nepal annually. This investment is 10 times less than the least developed
countries like Bangladesh and Cambodia," he said.
Dhakal
also urged the government to promote small and medium enterprises by supporting
them with project loans, tax concessions, and market diversification. According
to him, the protection of small enterprises is the foundation of a sustainable
economy as it is the largest provider of jobs.
Presenting
suggestions at the programme, Chairperson of the Tax and Revenue Committee of
the FNCCI, Ambika Prasad Paudel, said that the vacant land in hilly areas
should be developed as industrial areas or industrial villages, sick industries
should be rehabilitated, laws related to black market and other social crimes
and punishments should be revised and reformed.
He
suggested to make the provision of international online payment gateway at the
earliest, make all government services (including registration, detail
submission, fee payment) online, adopt digital signature at the Office of the
Company Registrar, tax administration, Public Procurement Office and National
Identity Card, and conduct the testing of tax through electronic medium.
The
business body suggested integrating various laws related to industry and
business, and create two codes – tax code and investment code. The income tax,
value added tax, excise duty act, customs act, revenue tribunal act, property
act and local acts should be integrated into tax code. Likewise, industrial
enterprise act, company act, public private partnership act, partnership formation
act, special economic zone act, private firm act and foreign investment and
technology transfer act should be integrated into the investment code.
The
FNCCI also suggested for uninterrupted energy supply to the industries, and
one-door system for all fees charged by various ministries in the areas of
forest, mines, water and tourism.
It
said that an power development conference should be organised in India to
attract Indian investment in the hydropower projects and increase energy export
there.
"The
private sector should be allowed to trade in electricity, and budget should be
allocated for the construction of access roads and transmission lines for
hydropower projects to be built by the private sector," read the FNCCI's
suggestions.
It
demanded a 10 per cent cash subsidy on export in order to promote it and such
incentives should be deposited into the bank account of the respective business
within a week of the export.
Speaking
on the occasion, FM Dr. Mahat said that the budget would announce programmes to
help the economy overcome the current recession and ensure the benefit of
growth and development reach the people.
He
also expressed his fix over the situation of having very limited resources and
high demand for development. "Policy intervention is needed in various
areas of economy and business. Likewise, there is also a need to make reforms
in tax regime," Dr. Mahat said while stating that if any policy does not
achieve the set objectives, it is useless.
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