FNCCI all praise for budget

Kathmandu, June 4

 The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Tuesday welcomed the budget of the coming Fiscal Year 2019/20 terming the government plan to promote development and expand and modernise domestic industry to make the country self-reliant on about two dozen industrial products as a 'positive move'.

The private sector umbrella organisation has appreciated the budget for its policy to use the 'made in Nepal' goods in government offices, while giving away gifts and construction of public infrastructure.

"However, the governments in the past has also announced to promote the use of Nepali goods in public offices but failed to implement it. As the budget aims at strictly implementing the use of domestically produced goods and services, we are hopeful about the realisation of the policy," said FNCCI in its statement.

It admired the budget for the 50 per cent concession on electricity bill and discount on interest of the bank loan by 5 percentage point for the textile industries. It also praised the plan to develop one industrial zone in each State.

The budget has a provision to provide bonded warehouse facility to the industries, which export more than 20 per cent of their products, in importing raw materials. Likewise, it has adopted a policy to bring the customs duty of the raw materials lower than of the finished goods. It will promote export trade, FNCCI said.

"We welcome the proposal to formulate the Integrated Tax Code. It is necessary to develop a dispute resolution mechanism to facilitate fast justice in tax related cases," read the statement.

Similarly, the initiative to provide investment related information to the private sector investors through a web portal service can be said a good beginning.

The FNCCI said that the promise to reform the business and enterprise registration process to reduce the cost of doing business, create necessary infrastructure, land acquisition, tax payment, adherence to the labour law and dispute resolution will make positive impact on the overall business climate in the country.

Likewise, it has taken positively the plans to start the one-window service, and formulate or amend the laws on company, intellectual property, banking and insurance, foreign exchange, liquidation and safe transaction, and industrial enterprise, and bylaws on foreign investment and technology transfer and the Investment Board. It has expected effective implementation of these legal instruments.

The private sector body has also welcomed the plans for the identification, development and value addition of exportable goods, promotion of such products in international markets, executing the standards for the foods and beverages, authentication of Nepal tea at the international level, development of International Exhibition Centre and dry port in Chobhar, and effective implementation of safeguard, antidumping and countervailing laws to discourage the unnecessary import of luxury goods.

"The FNCCI welcomes the government promise to expand the tax net and check tax evasion, develop tax payer-friendly tax administration with a simplified process, and enhance  the use of technology to improve overall tax regime," read the statement.

It said that the development of large hydropower and solar projects, international airports, strategic roads and new tourism development had been included in the budget, and the private sector wanted government commitment to building these facilities at the earliest.

It has also demanded that the FNCCI be taken as a partner in the economic progress and development of the country.

Published in The Rising Nepal daily on 5 June 2019.