June 16: Nepal Chamber of Commerce (NCC) has called on Finance Minister Janardan Sharma to implement its suggestions through the budget.
NCC has demanded the withdrawal of the decision to increase tax on electric vehicles and the revocation of the reference price by recognising the LC and the banking transaction value.
It stated that the tax policy in the budget will result in further decline of the private sector. NCC said that the existing ceiling of Rs 5 million for value added tax (VAT) is very nominal from the perspective of the increase in the foreign currency exchange rate and the rising inflation. It demanded raising the VAT threshold to Rs 10 million.
Likewise, NCC said the additional customs and excise duty on electric vehicles were not practical in the context of the announcement through the budget of building a self-reliant economy through the use of electricity produced within the country.
The chamber concluded that although the government has adopted the policy of export promotion, it has not been implemented in practice. The NCC drew the attention of the government to create an environment where in the private sector would be able to carry out business in an easy way by maintaining the balance of payment, systematizing the import and encouraging exports. -- RSS