Mixed reactions on budget

KATHMANDU, Nov 21: Business organizations have expressed mixed reactions on the new budget announced by the government on Saturday.



Issuing a press statement Sunday, Confederation of Nepalese Industries (CNI) stated that the newly announced budget has saved the national economy from the brink of collapse. [break]



The CNI has categorically appreciated the provisions such as industrial security, concessional price of diesel for industries, emphasis on development of infrastructure for industries, incentives on exports, rebate on income tax for exporters and tax rebate to industries generating higher employment, among others.



It has also hailed the decision to form a high-level board to bring about reforms in the management of public enterprises (PEs). CNI, however, has expressed dissatisfaction over the lack of programs to address burgeoning government expenditure and deteriorating investment climate in the country. It, however, lauded the decision to widen tax net and prioritize infrastructure development.



CNI also expressed dissatisfaction over the government´s failure in incorporating the provisions included in Industrial Policy in the Economic Act.



Similarly, Federation of Nepal Cottage and Small Industries (FNCSI) expressed its dissatisfaction on the new budget, stating that it has failed to incorporate FNCSI´s suggestions for the development of cottage and small industries.



Nepal Foreign Trade Association (NFTA) welcomed the budget, stating that it had given high importance in creating investment friendly environment in the country. It, however, criticized the budget for ignoring the multiple Value Added Tax (VAT) system and increasing income tax by 10 percentage points to 35 percent.



Hotel Association of Nepal (HAN) expressed its dissatisfaction for not prioritizing tourism sector in the budget. “The government has given due importance to Nepal Tourism Year 2011 but the overall tourism sector hasn´t been prioritized,” HAN said in a statement.



HAN has also demanded the government to recognize hotel as manufacturing industries and provide facilities promised to them.

Related story

Budget receives mixed reactions from lawmakers