The Confederation of Nepalese Industries has stated that the effective implementation of the budget, which focuses on industrial promotion, will pave the way for a new direction for the country's economy.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
The Confederation of Nepalese Industries (CNI) has expressed the view that the budget for the fiscal year 2083/084 will give a new direction to the economy. The effective implementation of this budget, which focuses on industrial promotion, will pave the way for a new direction for the country's economy, the CNI said. The budget will attract domestic production as well as foreign investors, the CNI said in a statement.
‘The Confederation has positively viewed the budget for the fiscal year 2083/084 announced by the Government of Nepal. The Confederation believes that the effective implementation of this budget, which focuses on industrial promotion, will pave the way for a new direction for the country’s economy,’ the statement said. ‘The budget is expected to attract domestic production as well as foreign investors.’
The Confederation believes that the decision to reduce customs duties on 273 items to make a difference in customs duties on finished goods and raw materials for manufacturing industries will make domestic products competitive and help accelerate the pace of industrialization. The Confederation has stated that the abolition of excise duty on 360 items will help reduce production costs.
The Confederation has stated that the private sector will be encouraged by the proper use of forests and natural resources, green industrialization, priority for job creation and import substitution, and the construction and operation of industrial zones like Motipur and Mayurdhap by the private sector. The Confederation has already submitted its intention to the Government of Nepal for the construction and operation of an industrial zone a few years ago. The Confederation claims that this will now be implemented.
The programs introduced in the budget include reviewing the demand charge for electricity to enhance the competitiveness of manufacturing industries, providing discounts on electricity tariffs, and providing industrialists with access to industrial zones, special economic zones, and leases. Similarly, the Confederation believes that the issue of being able to mortgage the structures built on land for banking purposes will encourage industrialization.
‘The system of automatic refund of value-added tax, the system of withdrawing the case if an additional 1 percent is paid in the disputed tax, and the system of not charging interest, fines, etc. is very practical,’ the statement said. ‘Many industrialists and investors have been confused in the case for years. This arrangement will provide them with great relief and help them focus on productive work.'
The provisions, including the exemption of Section 57 of the Income Tax from involuntary transfer of rights, which the Confederation has been raising, will eliminate the complications seen in the process of succession management, institutional restructuring and business expansion of industries and businesses, the Confederation has stated.
The announcement of taking back profits and facilitating the return of royalty will attract foreign investment and seems to play an important role in creating an investment-friendly environment.
Raising the personal income tax limit to Rs. 1 million and reducing the maximum rate by 10 percent is an important step for the economy. Industry, trade and service sectors can gain momentum only if the purchasing power of consumers can be increased. In this context, these arrangements can be expected to help expand demand in the economy.
It has been said that for the development and expansion of labor-intensive industries such as agro-processing, tourism services, light manufacturing, etc. with export potential, it will be necessary to operate an employment-linked production zone as a model, and to make appropriate policy and legal arrangements for investment promotion, economic reform, and smooth service delivery. The issue of formulating laws related to debt recovery, formulating, replacing or amending dozens of acts, rules, procedures, and guidelines for investment promotion, and presenting some Nepal Act Amendment Bills in Parliament to immediately repeal 15 laws that have already been announced will encourage investors.
However, some important issues have been left out of the budget. The issue of quality promotion and importing quality goods has been left out of the budget.
A policy of not imposing limits on the land required for manufacturing industries should be adopted. For this, it seems that the issue of land limits should be addressed by stating that no provision related to limits should be applied to such land, stating that no limit will be imposed on the land mentioned in the project or scheme of the industry submitted to the registering body and approved while registering the industry.
It would be easier for industrialists and businessmen and the government if there was a provision to reconcile the amount outstanding to be paid to any government body and the amount outstanding to be paid or refunded by the government to the industry.
The Confederation understands that effective implementation of the budget is essential to achieve the 7 percent economic growth promised by the budget, promote investment, and make the economy dynamic.
