The Confederation of Nepal Industries (CNI) has commented that the government has introduced the budget for the financial year 2082/83 to support the increase of private sector investment to build a dynamic economy while recognizing the challenges of the current economy.

The confederation has said that some areas have been given high priority along with balanced budget, and private investment promotion has been prioritized by making more policy, legal and procedural reforms in the areas that contribute highly to economic growth. 

The Confederation has welcomed the issue of granting a rent discount for the first three years to licensed industries establishing new industries in special economic zones and industrial zones, reducing the monthly rent rate of special economic zones from 20 to 5 rupees per square meter, and providing facilities similar to special economic zone industries if the industrial zone exports more than 30 percent of its products. 

"Confederation welcomes the announcement that companies that build industrial areas will be provided facilities like hydropower production companies and industries established in such industrial areas will be provided as industries in special economic zones, the monthly rental rate set for industrial areas will be reduced by 50 percent and the law on land acquisition and demarcation will be reviewed," said the statement issued by the Confederation on Sunday. 

The confederation has been asking for the establishment and operation of incubation centers to promote startups and entrepreneurship. The government through the budget has announced to operate the incubation center in collaboration with the government, universities and the private sector. The confederation believes that a 75 percent discount on income from information technology service exports, only 5 percent income tax on the income of people residing in Nepal and exporting information technology services to foreign countries and this tax will be final, no income tax for startup businesses with an annual turnover of up to 100 million, a system that gives information technology-based industries and hotels and resorts special industries such as income tax and electricity tariffs will attract investment in the information technology and startup sector. 

Nepali businessmen or companies are also of the opinion that the issue of legal provisions to allow Nepalese businessmen or companies to set up processing factories by exporting sales branches or semi-processed materials abroad and investing up to 25 percent of the annual income from exports is far-reaching. 

"The government will review the laws related to value added tax, income tax and excise duty through the budget, considering the suggestions received to implement multiple rates on value added tax, and study its relevance and practical use," the statement said, "Confederation requests to prepare the necessary environment to implement multiple rates on value added tax by giving high priority to this study." 

The Confederation has also requested to implement the announcement that a modern industrial zone will be built with the participation of the private sector through the investment board in Shaktikhor of Chitwan and Mayurdhap of Makwanpur and that the special economic zones at Panchkhaal and Simra will be operated with the participation of the private sector. 

Partnership with the private sector in the construction, operation and infrastructure development of data centers, study of the feasibility of setting up data centers in the mid-hill region to attract foreign investment in the information technology sector, and the announcement that land, uninterruptible power and security will be provided to local and foreign companies who want to set up data centers, the federation believes, will bring a new dimension to the development of the information technology sector.