Morang Industry and Trade Association has demanded to remove the tax on industrial raw materials for the protection and promotion of indigenous industries. In an interaction program held in Biratnagar on Monday under the joint initiative of the Federal Ministry of Finance and the Morang Industry and Trade Association, representatives of the industry sector suggested to the government to bring an industry-friendly tax policy for the coming financial year 2082/083.

In the program, Anupam Rathi, president of Morang Udyog Trade Association, said that the industrialists were confused by the different tax rates on the import of raw materials. He demanded to maintain uniformity by removing the provision of 5 percent customs duty on wheat imported from India and 10 percent on wheat imported from third countries. According to Rathi, equal opportunities should be given by ending the discrimination in grants given on the basis of access. 

Rathi also emphasized that the Value Added Tax (VAT) should be restructured to encourage the indigenous industry. In addition, he suggested that the current 30 percent customs duty on imported sugar in Nepal should be reduced to 15 percent and the duty rate should also be reduced to protect the textile industry. 

President of Nepal Industry Confederation Koshi Province Committee and former Constituent Assembly member Pawan Kumar Sarada said that the industrialists are disappointed with the tax collected from the three levels of governments and commented that the unauthorized collection by stopping the vehicles on the highway, gangster tendencies and unorganized tax policy have made the industry prone to crisis. 

"Due to the government's wrong tax policy, the revenue has not been collected as per the target", he added, "Industrialists are thinking of migrating abroad, the intellectual power of the country has also started to leave." 

President of industry organization Morang Rakesh Surana, Chairman of the Revenue Consultative Committee Devkinandan Agarwal on behalf of Federation of Nepal Chamber of Commerce and Industry Koshi Province Committee and other speakers also held the view that a clear, stable and favorable tax policy is necessary for the sustainable development of the industry. They also asked the government to strictly control illegal smuggling at the Jogbani border crossing between Nepal and India.