Industrialists and businessmen of Nepalgunj have demanded that the government reduce customs rates.

In a suggestion collection and interactive program organized by the Revenue Advisory Committee of the Ministry of Finance with industrialists and businessmen in Nepalgunj on Friday for the formulation of the revenue policy for the upcoming fiscal year 2082/083, industrialists and businessmen suggested reducing customs rates, increasing the tax scope and reducing the rates, reducing the VAT rate, and tightening customs.

Industrialists and businessmen said that the smuggling that is taking place due to the lack of monitoring and being connected to the open border of Nepalgunj has created a situation where the state cannot compete with the goods brought by revenue and businessmen who evade customs. They have warned that the problem of unemployment will also increase as the industries and businesses affected by taxes collapse.

The businessmen pointed out that after Corona, when banks arbitrarily increased interest rates, industrialists and businessmen are now hoarding money in banks as they stop taking loans for investment, and urged the revenue collection office to be aware so that the same situation does not happen.

At the program, Secretary of the Ministry of Finance, Ghanshyam Upadhyay, said that public officials, industrialists, businessmen and individuals need to rise above personal profit and loss. He opined that everyone should think about what they are doing to increase economic activity. ‘We all need to improve,’ said Secretary Upadhyay. He said that the suggestions received from industrialists and businessmen are appropriate and will be discussed. Secretary Upadhyay also instructed the customs officials participating in the program to increase surveillance at customs.

Similarly, Banke Chief District Officer Dil Kumar Tamang said that he is always available to discuss the security arrangements and business issues of the district. He opined that everyone should be honest, leaving aside the tendency to go across the border for shopping and ask questions themselves.

Abdul Wahid Mansuri, central member of the Federation of Nepalese Chambers of Commerce and Industry, said that 80 percent of goods are entering without customs clearance due to the open border. He said that the revenue has not increased since goods worth Rs 25-30 crore are entering without customs clearance every day. ‘Customs rules are not followed, the manpower at customs has also decreased, customs regulation should be increased,’ he said, ‘Even though the prices of goods in Nepal and India are different, smuggling has increased, so at least customs rates and VAT should be removed on daily consumer goods.’ He said that if customs rates are to be reduced, the number of people who clear customs will increase. Central member Mansuri said that the government also needs to pay attention to the fact that some Nepali goods go to India and re-enter Nepal from there. 

Narendra Oli of the automobile sector had said that the suggestions he gives every year on tax issues are not implemented. ‘We give suggestions but they are not implemented,’ he said, ‘Importing vehicles from India costs 3 to 5 times more.  However, during the season, Indian vehicles come here and work here, Nepali businessmen suffer losses.’ Accusing that clothes, food, and mechanical parts are imported through the settings of the employees, he said that the goods of businessmen who have imported here after paying taxes are being stored in the warehouse.

Businessman Oli complained that the revenue department does not provide tax education but raids the shops of businessmen in a terrorist manner. Businessman Oli had said that the rule of large fines should be removed even for unintentional mistakes, and demanded that businesses be closed and tax arrears be waived when businesses are closed. Expressing dissatisfaction with the revenue department, he also warned that the situation should not be like that of the bank.

President of the Nepal Herbal Businessmen Association Tanka Prasad Sharma had said that exports cannot flourish if taxes are imposed up to 100 percent on exports. He said that he had met the Finance Minister and secretaries several times to discuss this issue, but no action was taken. "There is a problem in exports, and we urge Nepal and India to discuss it and resolve it," he said. He had demanded the government to end the situation of paying taxes at local levels based on the use of the road.

Industrialist Kasmira Khatun demanded a reduction in customs duty on raw materials imported from India. She said that it is necessary to reduce customs duty on raw materials imported from India to make the industry flourish and competitive in the country. She, who has been running a garment industry, said that the local industry has not been able to flourish due to the large-scale purchase of school supplies from across the border.