KATHMANDU, Aug 12: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the leading professional body of the private sector, has asked the government to address the issue of multiple taxes imposed by the federal and sub-national governments.

The private sector urged Prime Minister KP Oli to implement integrated tax in place of multiple taxes imposed by the three tiers of governments, during the FNCCI's call on the prime minister at his official residence at Baluwater on Saturday. 

The delegates said that after the implementation of the federal set up, the private sector was not confident in doing business due to the imposition of multiple layers of taxes. Such tax structure has panicked the private sector, according to the delegates. They also said conducive environment for enterprises and businesses has been lacking as always. 

Local level units and provinces have been imposing taxes on their own from the beginning of the current fiscal year. They have introduced taxes on movement of goods and services from one local unit to another, and implemented major hikes in tax rates of businesses and enterprises. The local units have imposed taxes on use of construction materials and environment taxes on fuel consumption, advertisement tax, massive arbitrary hikes in land and property tax, and on scrap collection. 

Likewise, provinces also have imposed several taxes on their own. Province 2 has introduced 0.5 percent tax on sale of cement products for using natural resources. These multiple taxes though mostly have been put on hold by the intervention of federal governments but the private sector is terrified as such taxes may resume anytime again. 

FNCCI president Bhawani Rana, who led the FNCCI delegation, urged the PM to address the concern of the tax panic created by the layers of government. Rana also complained that they have not realized any change after the current government, which had promised prosperity among many things, came into power. 

The federation has also drawn attention of the Nepal police to set up a consultation group for addressing the issues on concerns of business community as promised by KP Oli when he assumed office. The FNCCI has also drawn the government's attention toward revision of several outdated laws including the Black Marketeering Act.

The private sector also sought the government's action to come up with a policy to promote domestic products as far as possible. They also asked the government to ensure that a single door policy to provide services to business and enterprises is implemented as soon as possible. PM Oli made an appeal to the FNCCI delegates to start investing in Nepal, and assured them of the government efforts to support and meet their demands.