FNCCI urge govt to keep large industry regulation rights

Kathmandu, Dec. 19: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Wednesday urged the government to keep the large industry registration and regulation rights, other than the infrastructure industry with majority share of provincial or local governments, with the federal government.

Submitting its recommendations on the draft of the Industrial Enterprise Act, 2018, and the bill of the Foreign Investment and Technology Transfer Act, (FITTA) 2018 to Minister of Finance Dr. Yuba Raj Khatiwada and Minister for Industry, Commerce and Supplies Matrika Prasad Yadav, the business body recommended the government not to devolve the duty to the federal level.

The FNCCI requested the ministers to amend the provision that restricts an enterprise to open its branch industry in a different location and said that the industries should not be barred from expanding their branches.

It has recommended defining the enterprise with Rs. 10 million transactions per annum contrary to the provision of Rs. 5 million transactions as mentioned in the draft. It also asked the government to provide income tax waive off facility to large industries having an investment exceeding Rs. 1 billion.

Likewise, the FNCCI suggested not forcing the foreign investors to invest a certain portion from their profit in Nepal. "It is irrational," it said.

A delegation led by FNCCI president Bhawani Rana, which included senior vice-president Shekhar Golchha, vice-presidents Kishore Kumar Pradhan, Umesh Lal Shrestha and Chandra Prasad Dhakal and executive committee members, met the minister duo at the Ministry of Finance and submitted the recommendations.

Accepting the recommendations submitted by the private sector, FM Dr. Khatiwada termed them as 'very important' and assured that they would be incorporated in the act.

"As the government aims at leading the country to the path of prosperity, it would promote industrial development and protection the domestic enterprises and Foreign Direct Investment (FDI)," he said.
He also said that the country was on the path to development and prosperity.

Minister Yadav assured government support to the private sector in their attempt to expand and develop business and industry.

He requested the business community to support the government in strengthening national industries, attracting foreign investment and creating investor-friendly environment.

FNCCI president Rana said that the Industrial Enterprise Act was the most important legal instrument so other laws should not contradict with its provisions.

The business community also urged the ministers to pay special attention towards reducing the cost of doing business since it was discouraging the foreign investors to invest in Nepal. They also asked the governed to announce an investment decade from 2019-2029.

Meanwhile, FNCCI president Rana held a meeting with French Ambassador to Nepal Francois-Xavier Leger at her office.

Rana urged the envoy to support Nepal in attracting more investment and technology from France while Leger proposed a Nepal-France Business Forum Meeting in April 2019 in Kathmandu.

Rana welcomed the proposal, said the FNCCI.

Published in The Rising Nepal on 20 December 2018.