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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