Presenting suggestions of the private sector at a pre-budget budget discussion here on Wednesday, Hari Bhakta Sharma vice president of the Confederation of Nepalese Industries (CNI), said the government should scrap the additional 40 percent tax that is imposed on firms having disposable income of more than Rs 2.5 million. “Our request is to make Nepal a country with low income tax,” Sharma added. [break]
Urging the government to take different policy initiative to support the private sector, Sharma said the government should provide 50 percent grant to firms, which are facing acute power shortage, to establish alternative energy plant. “Also the government should take immediate action to provide dedicated electricity feeder for industrial areas," Sharma said.
The businessmen have also put forth their suggestions on infrastructure development, export promotion, customs duty revision, VAT reform, financial sector, and capital market.
Speaking at the program, CNI´s President Emeritus Binod Chaudhary said the government´s focus shouldn´t be one revenue collection alone. “The government has to put effort on increasing development expenditure and inject new investment in infrastructure development," Chaudhary, who is the only Forbes billionaire in the country, said.
“Our economy is heavily dependent on remittance and revenue. It won´t help us prosper in the long run.”
Responding to the concerns and suggestions of the businessmen, Finance Minister Shankar Prasad Koirala said the government would not make any change in VAT and income tax threshold in the coming budget.
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