The Confederation has stated that the effective implementation of the budget, which focuses on industrial promotion, will lay the foundation for giving a new direction to the country's economy.
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The Confederation of Nepalese Industries (CNI) has expressed the view that the budget for the fiscal year 2083/84 will give a new direction to the economy. The effective implementation of the 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 CNI has positively viewed the budget for the fiscal year 2083/84 announced by the Nepal Government. The CNI 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 will attract domestic production as well as foreign investors,' the CNI said. 'The CNI believes that the decision to reduce customs duties on 273 items to make one level different in customs duties on finished goods and raw materials for manufacturing industries will make domestic production competitive and help accelerate the pace of industrialization.' The Confederation has said that the abolition of excise duty on 360 items will help reduce production costs.
The Confederation says that the issue of proper use of forests and natural resources, green industrialization, job creation and import substitution, and the construction and operation of industrial zones like Motipur and Mayurdhap by the private sector will encourage the private sector. The Confederation has already given its intention to the Government of Nepal for the construction and operation of industrial zones a few years ago. The Confederation claims that this will now be implemented.
The programs introduced in the budget include reviewing the demand charge of electricity to increase the competitive capacity of manufacturing industries, providing discounts on electricity tariffs, and providing industrialists with access to industrial zones, special economic zones and leases. The Confederation believes that the issue of allowing the construction of structures built on land for banking purposes will encourage industrialization.
‘The provision of automatic refund of value added tax, the provision that the case will be withdrawn if an additional 1 percent is paid on the disputed tax, and that no interest, penalty, etc. will be levied on it is very practical,’ the statement said, ‘Many industrialists and investors have been confused in cases for years. This provision will provide them great relief and help them focus on productive work.’
The provision, including the exemption of Section 57 of the Income Tax from the involuntary transfer of rights that the Confederation has been raising, will eliminate the complications seen in the 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 play an important role in creating an investment-friendly environment. Raising the personal income tax limit to 1 million and reducing the maximum rate by 10 percent is an important step for the economy. Only by increasing the purchasing power of consumers can the industry, trade and service sectors gain momentum. In this context, the Confederation says that 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 is said that appropriate policy and legal arrangements will be made for the operation of employment-linked production zones as a model, investment promotion, economic reform and smooth service delivery,’ the statement said, ‘The issue of formulating laws related to loan recovery, formulating, replacing or revising 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.’
The Confederation said that the issue of quality promotion and importing quality goods has been left out of the budget. ‘A policy should be adopted that does not impose limits on the land required for production-oriented industries. For this reason, it seems that the issue of land limits not being applied to the land mentioned in the project or scheme of the industry submitted to the registering body and approved during the registration of the industry has been left out, and no provision related to limits should be applied to such land,' the federation said.
The federation believes that it would be easier for industrialists and the government if there was a provision to allow the industry to reconcile the amount outstanding to any government body and the amount outstanding to be paid or refunded to the industry.
