CBFIN Suggestions For Upcoming Budget; Corporate Tax Reduction, Remittances, IPO And Others
The Confederation of Banks and Financial Institutions Nepal (CBFIN), the governing body of banks and financial institutions operating in Nepal, has submitted institutional proposals to the Ministry of Finance on various issues to be addressed with the budget for the next Fiscal Year 2079/80.
Suggestions:
- Banks' subsidiaries need to have special provisions for issuing broker licenses.
- To reduce the income tax (corporate tax) paid by banks and financial institutions from 30% to 25%, just like any other company.
- To deduct 100% of all expenses incurred by banks and financial institutions for the purpose of income tax calculation under the Institutional Social Responsibility Sister Program (CSR Fund)
- Hedging arrangements to manage the risks arising from the flow of credit in the Nepalese currency should be promoted in politics.
- Existing income tax limits should be raised to a minimum of Rs. 800,000
- Finance companies should be allowed to trade in foreign currency
- To introduce remittances through banking channels.
- To provide IPOs with a 10% reserve to the migrant workers.
- To involve Nepali manpower abroad for employment in the social security fund
- In order to make the country's economy self-reliant, special emphasis should be given to the agricultural sector
- Development and expansion of young and women entrepreneurs
- The special exemption should be provided for income tax on the production of indigenous basic commodities
- The establishment of agricultural inputs and coordination centers in every local body.
