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Nepal Chamber of Commerce (NCC) has submitted its recommendations to Minister for Finance, Dr Swarnim Wagle, regarding the executive budget for the upcoming fiscal year 2083/84 BS.

A delegation headed by Chamber Chairperson Kamalesh Kumar Agrawal reached the Ministry and presented policy recommendations in a way to ensure overall economy circular.

Noting that the upcoming budget should be private sector friendly, production-oriented and investment-motivated, the Chamber urged to lay emphasis on building economic stability, good governance and business friendly environment.

It is stated that the Chamber presented its opinion by incorporating all sectors, including agriculture, tourism, industry, information technology, energy, foreign investment, export promotion and tax system reforms.

The Chamber has suggested modernization of the agriculture sector, concessional loans and expansion of market access, infrastructure development and international promotion in the tourism sector, reducing production costs and procedural facilitation in the industrial sector.

Among other recommended measures include tax exemptions and expansion of 'digital' infrastructure in information technology, and promoting private investment and hydropower development in the energy sector.

The Chamber has also emphasized on simplifying tax system and implementing a one-door system, encouraging exports, and promoting 'Made in Nepal' products.

The Chamber has recommended to introduce a policy for utilizing barren land to provide 'lease' arrangements and facilitate investment for farmers.

Among other recommendations provided to the Ministry of Finance include adopting a policy to provide export trade subsidies based on value addition and delivering export incentives to exporters in a simple and convenient manner under a single-window system, utilizing the skills and expertise of returnees from foreign employment.

The Chamber has advised to come up with a policy to encourage investment of remittances entering Nepal in energy and other infrastructure sectors, as most of the money coming to Nepal as 'remittances' is being spent only on consumption.

Likewise, the Chamber has suggested a policy arrangement in a way to provide domestic, small and medium enterprises with stable loans at a permanent interest rate.

The Chamber has stated that a one-door system should be implemented across the three tiers of government for all types of taxes and that the criteria for double taxation should be eliminated.

The Chamber has indicated that the 'online database' system should be made effective based on the evaluations set by the World Trade Organization.

Since the country largely depends on imports for most consumable goods, the Chamber has highlighted that applying the MRP labelling system on imported goods is quite difficult and should be implemented only after comprehensive discussion and consensus with the relevant stakeholders.

Budget to boost confidence of general public and private sector – Finance Minister

On the occasion, Finance Minister Wagle shared that the government has already taken several measures for economic reforms.

Sharing that the Department of Revenue Investigation has been scrapped, Minister Wagle said there is a plan to reduce tax rates, and now it is necessary to increase revenue, create employment, and expand the size of the economy.

The Minister referred to the government's efforts to adopt a liberal policy and create an environment where everyone can work, mentioning the upcoming budget will be encouraging for both businesses and the general public.

He also expressed commitment that constructive suggestions received from the private sector will be incorporated into budget planning. (RSS)