Long-term Practical Steps Required

Nepal Chambers of Commerce wants the budget to be more practical and target-oriented.

NCC hopes the budget will incorporate more long-term projects and programmes which have a lasting positive effect on the economy. The budget should focus on the development of rural areas and rural economy.

NCC believes that without sustainable peace, no business can flourish and without business/investment economic development is a distant dream. So, the first priority of the government should be establishment of lasting peace and favourable business environment. For favourable business environment and sustainable peace, the government should immediately put an end to bandhs, chakkajams, strikes and road blockades. It should protect investors and their investment and secure their right to do business. Only then will a favourable environment be created for the private sector’s de velopment.

The budget should focus on development of key areas like agriculture, hydropower, tourism, manufacturing sector and infrastructure development for economic growth. The budget should promote Public-Private-Partnership (PPP) in infrastructure development and clearly define the role of the private sector in this approach.

NCC further believes that the budget should emphasise on creating more jobs so that we can stop the younger generation migrating abroad. We have been urging the government to abolish the syndicate system and scrap the scrap tax which will give relief to people from spiraling price hike The proposed property tax should not be implemented before a new Constitution comes into effect Also, no new tax policies should also be implemented in this period.

NCC demands the implementation of multiple VAT for its effectiveness and generation of more revenue. The single VAT rate has been ineffective and most contentious since its implementation.

Also, the VAT system should be reformed so that exchange of bills becomes feasible in transactions. The existing labour policy is a major bottleneck in Nepal’s industrial and economic growth. The rigid labour policy is the main reason for low productivity and disputes between management and employees. So, the budget should amend this policy and make a new liberal and investment-friendly labour policy. The government should ratify the foreign investment policy, industry policy, commerce policy and hydropower act in the House, form the proposed Investment Board and set up Special Economic Zones within a month.

The consumer policy should be rectified and made business friendly as businessmen also are consumers. The budget should allocate funds for upgradation of TIA and construction of a new international air port. Similarly, new regional airports should be constructed in districts like Pokhara and Rupandehi. For development of hydropower sector, the budget should waive taxes on investments made in hydropower and provide tax holiday for 10 years.

Similarly, industries using local raw materials should also be granted this facility.NCC wants the budget to promote Information and Communication Technology in Nepal and also increase use of ICT among the general public by cutting customs duty and providing VAT free facility.

The government should also implement egovernance for better service and good governance. Climate change will be the biggest hurdle in the growth of LDCs like ours. Already, Nepal has started facing the effects of climate change in the agriculture and environmental sectors. So, NCC wants government to allocate fund for tackling this issue before it is too late. Malakar is president of Nepal Chambers of Commerce.