KATHMANDU, Aug 10: The government has pledged to treat the private sector as a key partner in economic development rather than viewing it with suspicion, promising to improve the investment climate while safeguarding legitimate investments, assets and profits.
During discussions with industrialists and business leaders on Monday, the government said its priority would no longer be limited to increasing tax collection but would focus on accelerating the cycle of production, investment, profit and reinvestment.
Finance Minister Swarnim Wagle held the meeting with representatives of the country’s 20 highest tax-paying multinational companies, including Ncell, Surya Nepal, Gorkha Brewery, Unilever Nepal, Dabur Nepal, and others.
During the meeting, the government said recent discussions with industrialists, business leaders, chief executive officers of commercial banks and the leadership of Nepal Rastra Bank had led to the conclusion that Nepal’s economic transformation should be jointly led by the government and the private sector.
According to the government, when businesses generate profits, reinvest them, increase production and employment, and expand markets, state revenue also ultimately increases. It therefore views the relationship between the government and the private sector as one in which the success of one is linked to the success of the other.
The government has urged the private sector to increase investment in Nepal, expand existing industries, enter new areas of production, introduce new technologies and create jobs.
Women who drive
It said protecting legally made investments, created assets and earned profits is one of its key responsibilities. The government said it is committed to creating an environment where investors feel their assets are secure, rules are stable, the tax system is predictable and the state acts as a partner.
During the discussions, the government also sought suggestions from the private sector on major obstacles to business expansion. The two sides discussed areas requiring immediate reform, including tax administration, regulation, land, energy, labour, infrastructure, finance, exports, legal provisions and government procedures.
The government said it would identify key decisions that need to be taken within the next six months and incorporate them into its implementation agenda. Issues raised during the discussions will be coordinated with the concerned ministries within a set timeframe, while the Ministry of Finance will continuously monitor progress through a “response desk.”
The government also pledged to continue dialogue with the private sector until problems are resolved rather than treating the discussions as a one-off exercise.
It said its policy would recognise honest taxpayers and businesspeople not merely as sources of revenue but as partners in nation-building.
The government said its goal is to create an environment where the success of industrialists is celebrated by society, investors feel secure, taxpayers are respected and young people are encouraged to pursue entrepreneurship.
It has pledged to make the coming decade one of major investment, increased production, job creation and economic confidence while transforming Nepal into an investment-friendly, business-friendly and production-oriented economy.
FinMin Wagle meets top officials of 20 highest tax-paying multinationals
Finance Minister Swarnim Wagle on Monday held discussions with representatives of the 20 highest tax-paying multinational companies operating in Nepal.
During the meeting, Chief Corporate and Regulatory Officer of Ncell, Dilli Ram Shrestha, said the ad hoc arrest of entrepreneurs has raised the question of security of businesspersons. Shrestha urges the government to implement a predictable tax system, review labour related laws and to end differentiated fees on renewal of business licenses for firms.
In response, Wagle said the government’s primary responsibility is to protect legitimate investments, assets created and profits earned in Nepal. He said the government’s priority is no longer limited to tax collection but also to accelerating the cycle of production, investment, profit and reinvestment.
Wagle acknowledged that businesses are not merely profit-making entities but also among the country’s largest taxpayers, employers and investors.
The 20 top tax-paying companies operating in Nepal include Surya Nepal Pvt Ltd, Ncell, Aarti Strips, Gorkha Brewery, Himalaya Airlines, Hongshi Shivam Cement, Doosan Energy Company Limited, Dabur Nepal Pvt Ltd, Bottlers Nepal (Terai) Limited, Unilever Nepal Limited and Asian Paints (Nepal) Pvt Ltd.
Senior officials from Power Construction Corporation of China, Gorkha Lahari, Huaxin Cement Narayani, New Hope Agro Business Nepal, Nepal Wellhope Agri-Tech Pvt Ltd, Varun Beverages Nepal, Turkish Airlines, Bhotekoshi Power Company and Berger Jensen & Nicholson (Nepal) Pvt Ltd also participated in Monday’s meeting with Minister Wagle.
