NCC urges FM Mahat to make production-oriented budget

Kathmandu, May 12

Nepal Chamber of Commerce (NCC) has urged Finance Minister Dr. Prakash Sharan Mahat to make the upcoming budget of Fiscal Year 2023/24 production-oriented, not distributary in order to bring the economy out of the current crisis and give impetus to the growth.

The business body emphasised that the budget should be realistic, implementable and flexible. "The budget should be able to provide necessary policy protection and concessions to the entrepreneurs who are on the verge of collapse because of severe economic recession," President of the NCC, Rajendra Malla said.

He demanded that the allocated development budget be spent by making an action plan according to the time schedule. "The tight monetary policy in the existing economic system has caused serious economic instability due to the negative impact of control-oriented economic policies and making business uncomfortable. It is necessary to focus the budget on production," stated Malla.

NCC also suggested increasing the scope of taxes as revenue collection as per the target has not been achieved. He said that the Personal Account Number card and citizenship should be given simultaneously.

The Chamber also requested to abolish the reference value for customs purposes and recognise the transaction value. Similarly, it recommended keeping international-level quarantine lab at the customs points. A multi-rate system for value-added tax has been suggested so that different rates should be maintained for general consumer goods and luxury goods.

According to NCC, there should be tax exemption on income up to Rs. 800,000 for individuals and up to Rs. 1.2 million for married couples. The chamber has also demanded removal of excise duty on all types of products except the production of alcohol, beer and tobacco products which are on the negative list.

The chamber has also drawn the attention of the government to draft a law for the proper promotion of natural resources and herbal products in the country and to make arrangements to export them to the international market.

Similarly, it asked for a special arrangement in the budget by formulating a policy for utilisation of the barren land. "The country should be made self-sufficient by modernising, mechanising and commercialising the agricultural production by utilising the barren land," read the suggestions submitted by the NCC to FM Dr. Mahat.

It also recommended making provisions to do real estate business only by licensed agencies. 

 Published in The Rising Nepal daily on 13 May 2023.