KATHMANDU, March 19: Industrialists have raised the prices of cement and iron rods, sparking widespread opposition. The issue was also criticized in Tuesday’s parliamentary committee meeting. Rabi Singh, president of the Federation of Contractors’ Associations of Nepal (FCAN), raised concerns about black marketing in cement and iron rod pricing during the Public Accounts Committee (PAC) meeting.
Devi Prasad Pokhrel, general secretary of the Biratnagar Hardware Association, also brought attention to the price hike in cement during last Friday’s PAC session. Despite the committee's directive to reduce cement prices, they have not decreased. On Tuesday, ruling and opposition party lawmakers criticized the government for failing to implement the directive.
Ruling party’s lawmaker Rajendra Kumar KC said the government should address the issue. Opposition lawmakers, including Manish Jha and Amaresh Kumar Singh, accused the government of colluding with businesses. They pointed out that even after the Public Accounts Committee's directive, prices have not decreased.
On Tuesday, a meeting of the Industry, Commerce, and Consumer Rights Committee became heated as lawmakers and industrialists clashed over the price hike.
Maruti Cement, United Cement and Jagadamba Cement found selling...
Former president of the Cement Manufacturers' Association, Dhruba Thapa, expressed frustration, questioning why they were repeatedly summoned to the committee. Lawmakers objected, claiming he was issuing threats. Maoist Center lawmaker Suryaman Dong, Nepali Congress lawmaker Rama Koirala, and UML lawmaker Amrita Devi Agrahari accused businesses of intimidating the committee under government protection. They also accused the Ministry of Industry of playing a double role.
Industry Minister Damodar Bhandari, present at the committee meeting, stated that action would be taken if the price rise was found to be unjustified.
On February 11, during a meeting of the Federalism Enablement and National Concerns Committee in the National Assembly, Minister Bhandari and lawmakers had a heated exchange. The minister denied any involvement in the price hike, attributing it to increased power cuts.
Meanwhile, the government’s proposed Ordinance Replacement Bill, which includes amendments to Nepal’s economic and investment laws, has faced criticism for favoring businesses. The bill, introduced by the two-thirds majority government, allows traders to increase prices by more than 20 percent without penalties.
The bill amends the Black-Marketing and Some Other Social Offenses and Punishment Act of 1975 and the Revenue Leakage (Investigation and Control) Act of 1995, allegedly benefiting special interest groups. Opposition lawmakers have repeatedly protested in parliamentary committees and the House, but the government plans to pass the bill without amendments on Thursday.
The deadline for amendments to the bill is Wednesday. Although opposition lawmakers plan to propose changes, they lack the numbers to block the bill. The ordinance has been in effect since its issuance on January 13. Once formally replaced by the bill, it could pave the way for tax evasion and consumer exploitation.
Article 4 of the ordinance removes Sub-Article 1 of Article 3 from the Black-Marketing and Some Other Social Offenses and Punishment Act of 1975. Similarly, it eliminates a restrictive clause from Sub-Article 2 of Article 13(a) in the Revenue Leakage (Investigation and Control) Act of 1995. Additionally, Article 6 of the ordinance amends Article 13(a) to exempt tax evasion cases below Rs 30 million from legal action.
Article 5 of the ordinance removes a provision in Article 13(a)(2) of the Revenue Leakage Act that required prosecution for intentional tax evasion. Another amendment in Article 13(a)(6) raises the threshold for mandatory legal action from Rs 50 million to Rs 300 million in tax evasion cases.
