Friday, September 26, 2025

Finance Ministry extends tax deadline by a month

Kathmandu, Sept. 16

The Ministry of Finance on Tuesday extended the deadline for tax submission for the private sector companies by a month at the request for the same by the latter.

Citing the damage inflicted on the business and industries during the protests called by Gen Z last week, the private sector has been suggesting that the government offer some relief measures to help them in reviving the business and boosting morale.

At a meeting with the representatives from the private sector organisations, Finance Minister Rameshore Khanal assured the private sector entrepreneurs that economic reform efforts would be undertaken with their support. He extended the tax submission deadline through a ministry-level decision responding to the demands of the community made last week.

FM Khanal said that the suggestions put forward by the business community would be carefully considered, and that data on the loss and damage caused by the movement would be collected so that appropriate measures could be taken.

According to the Ministry, he assured that the government would take the necessary steps to explore what tax concessions could be offered. However, he urged patience as the issues would be taken to the Cabinet for appropriate decisions.

During the discussion, business representatives also drew Finance Minister Khanal's attention to immediate financial relief measures, such as deferring the working capital loan directive for at least two years, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said in a statement.

According to it, the private sector has pledged its full cooperation to the government in the reconstruction, rebuilding and revival of the economy. The government has already established a fund for reconstruction, assessing the damages incurred during the recent protests.

It suggested that the Corporate Social Responsibility (CSR) funds could be mobilised for the reconstruction of damaged businesses and structures.

 

 

‘Ready for collaboration’

"We have also suffered losses. We are ready to work in collaboration, supporting ourselves as we rise and assist the government," said FNCCI President Chandra Prasad Dhakal, suggesting that the MoF should establish a dialogue mechanism between the private sector and the government for economic restoration and good governance.

Dhakal urged for loan restructuring and rescheduling facilities for businesses affected by the protests, and for tax exemptions, including income tax, to attract investment. He also noted the youth's demand for efficient government services and stressed the need for everyone to strive for the optimal use of information technology and ethical practices.

"At this juncture, reducing the Value Added Tax (VAT) rate or applying a lower rate on essential goods, and announcing special packages to attract Indian tourists would be appropriate. Tax exemptions, production-based relief, and concessional loans are necessary for small and medium enterprises," Dhakal said.

Likewise, President of the Confederation of Nepalese Industries Birendra Raj Pandey said it is crucial to strengthen the confidence of businesspeople and focus on revival in a situation like the current one, and that they are prepared for this.

President of Nepal Chamber of Commerce Kamalesh Kumar Agarwal highlighted the significant contribution of the private sector to the Nepali economy and emphasised the need to boost the morale of businesspeople.

 

Private sector seeks deferral to LDC graduation

They also said that, given the unpreparedness of the government and political uncertainty, Nepal should  seek deferral from its scheduled plan to graduate to the ‘Developed Country’ from the current Least Developed Country (LDC) next year. Bangladesh, facing similar issues, is reportedly seeking to postpone its graduation decision to avoid losing trade facilities. Nepal also needs to act promptly on this matter, read the statement.

Min Bahadur Gurung, founder of Bhat Bhateni Supermarket that suffered a substantial loss with 21 outlets damaged out of 28 during the protests, expressed his continued desire to invest, create employment and contribute to revenue.

 Published in The Rising Nepal daily on 17 September 2025.   

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