FinMin says pending bills thru ordinance
KATHMANDU, JUN 02 -
Finance Minister Barsha Man Pun has said the government will bring the bills related to business and economy, which got stuck at the dissolved Legislature Parliament, through ordinance.
The minister’s remark has come amid growing demand for bringing the bills through ordinance to boost the private sector’s confidence. “These bills will be brought through political consensus,” said Pun during his meeting with a delegation of the Confederation of Nepalese Industry (CNI) on Friday.
More than a dozen bills related to the economy have been pending at the dissolved parliament.
The Finance Ministry is considering bringing bills related to Special Economic Zone, Banks and Financial Institutions and three bills on anti-money laundering (AML)—Mutual Legal Assistance, Organised Crime and Extradition Treaty—through ordinance. Differences within the UCPN (Maoist) had delayed the endorsement of the three bills on anti-money laundering.
At the meeting, NIC Bank CEO Sashin Joshi said the government should bring the bills related to AML at the earliest as further delay would be prove costly for banks and financial institutions (BFIs).
The next plenary of the Financial Action Task Force (FATF) is scheduled for June 18-22 in Italy, and Nepal’s failure to endorse these three bills could result in the country being blacklisted by the plenary.
The Banks and Financial Institutions Act-2008 empowers the central bank to issue orders to BFIs to merge if their capital fund is inadequate or their financial condition is deteriorating; if they act against the interests of depositors; and/or if there is a need to enhance competitiveness of BFIs to strengthen the financial system.
The endorsement of the SEZ bill, according to the private sector, would pave the way for the implementation of SEZ projects.
CNI also demanded a common understanding on economic agenda among the political parties as the Constituent Assembly dissolution may threaten business environment. “The government needs to come up with a common minimum economic agenda,” said Hari Bhakta Sharma, vice chairman of CNI. Stating that the dual fuel price mechanism has hit industries hard, CNI also asked the government to maintain a single diesel price.
It also asked the government to ensure availability of electricity through separate feeder for industries employing more than 50 individuals. CNI has demanded reduction of corporate tax on manufacturing and other industries by 10 and 15 percent, respectively, from the current 20 and 25 percent.
According to Joshi, the government’s reluctance to offer corporate tax waiver has discouraged BFI mergers the central bank’s efforts. “There is need to give some waiver in corporate tax to encourage mergers,” said Joshi.
Stating that banks’ liquidity position has improved, CNI also asked the government to reduce the Statutory Liquidity Ratio of banks from the existing 20 percent to 10 percent. “It could boost investments in industries,” said CNI.
Sharma also urged the government to set up a ‘Technology Development Fund’ of up to Rs 1 billion to facilitate research and development which could also help in attracting foreign capital.
Major Pending Bills
Special Economic Zone Act,
Bank and Financial Institution Act 2009
Mutual Legal Assistance Act,
Organised Crime
Extradition Treaty
Electricity Act 2008
Nepal Electricity Regulatory Commission Act 2008
Commercial Business of and Real-Estate Act
