Pvt sector demands fixed budget date in new statute
KATHMANDU, JUN 22 -
With delay in the budget presentation for the last three years crippling the economy, the private sector has demanded that a certain date be fixed for the annual budget presentation in the new constitution.
The Federation of Nepalese Chambers of the Commerce and Industry (FNCCI) has demanded that the date for the budget presentation be fixed in mid-March every year; discussion on the budget for a month until mid-April; and implementation of the budget from the beginning of the Nepali calendar year (Mid-April).
FNCCI said the date it has recommended for the budget presentation is practical as the Indian budget is presented before that date. Usually, in India, the railway budget is presented on Feb. 26 and a full budget is presented on Feb. 28. “We can adjust our budgetary provision as per the Indian budget as our economy is heavily dependent on the Indian economy,” said Jagadish Prasad Rathi, chairman of the revenue committee at FNCCI, at a pre-budget discussion on Tuesday.
The private sector’s apex body also asked that the fiscal year be maintained from mid-April instead of the current mid-July. “Starting a fiscal year from mid-July is scientifically incorrect,” FNCCI said in its official suggestion for the new budget. Nepal has been maintaining mid-July as the beginning of the fiscal year since 1967.
Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari also backed the private sector on fixing a certain date of the budget presentation in the constitution. “I urge you to lobby hard for fixing the budget presentation date in the constitution,” he said at the discussion.
On the occasion, most of the entrepreneurs demanded tax exemption in their respective business sectors. Among the entrepreneurs seeking such a tax facility are related to vehicle import, pulse export, information technology, foreign employment and contractors, among others. Such a demand of tax cuts prompted Finance Secretary Krishna Hari Baskota to respond. “All of you are asking for tax exemption in your fields which I think is not a good suggestion,” he said. “It would have been better if you had suggested how to increase the revenue base to Rs 400 billion from half of the amount currently.”
In the FNCCI’s official suggestion, it has sought a number of measures to be taken in income tax, value added tax (VAT), excise duty and customs duty provisions.
FNCCI has sought an increment in the taxable income threshold to Rs 300,000 per year for an individual and Rs 350,000 for a family. Similarly, it has demanded VAT exemption on construction materials to be used in hydropower projects and a waiver in excise duty on iron and steel, paints, cement, plastic bags and noodles. The apex body of the business community also demanded that customs duty on machineries and parts to be used for agriculture, tourism and mines be maintained at 1 percent. It sought procedural simplification during the payment of taxes.
FNCCI also asked for a package facility to promote investment in the hydropower sector to end load shedding, provision for less than 10 percent interest rate on loans for productive sectors and provision of ‘negative declaration’ of income source while depositing over Rs 1 million in banks and financial institutions.
FNCCI wishlist
Fixing of certain dates for the presentation of policies and programmes and the budget in the new constitution
Budget be presented in mid-March every year
Beginning of the fiscal year from mid-April
Increment in the taxable income threshold
VAT waiver in construction materials to be used in hydropower projects
Bank interest rate be less than 10 percent for productive sector loans
Source: Kantipur
With delay in the budget presentation for the last three years crippling the economy, the private sector has demanded that a certain date be fixed for the annual budget presentation in the new constitution.
The Federation of Nepalese Chambers of the Commerce and Industry (FNCCI) has demanded that the date for the budget presentation be fixed in mid-March every year; discussion on the budget for a month until mid-April; and implementation of the budget from the beginning of the Nepali calendar year (Mid-April).
FNCCI said the date it has recommended for the budget presentation is practical as the Indian budget is presented before that date. Usually, in India, the railway budget is presented on Feb. 26 and a full budget is presented on Feb. 28. “We can adjust our budgetary provision as per the Indian budget as our economy is heavily dependent on the Indian economy,” said Jagadish Prasad Rathi, chairman of the revenue committee at FNCCI, at a pre-budget discussion on Tuesday.
The private sector’s apex body also asked that the fiscal year be maintained from mid-April instead of the current mid-July. “Starting a fiscal year from mid-July is scientifically incorrect,” FNCCI said in its official suggestion for the new budget. Nepal has been maintaining mid-July as the beginning of the fiscal year since 1967.
Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari also backed the private sector on fixing a certain date of the budget presentation in the constitution. “I urge you to lobby hard for fixing the budget presentation date in the constitution,” he said at the discussion.
On the occasion, most of the entrepreneurs demanded tax exemption in their respective business sectors. Among the entrepreneurs seeking such a tax facility are related to vehicle import, pulse export, information technology, foreign employment and contractors, among others. Such a demand of tax cuts prompted Finance Secretary Krishna Hari Baskota to respond. “All of you are asking for tax exemption in your fields which I think is not a good suggestion,” he said. “It would have been better if you had suggested how to increase the revenue base to Rs 400 billion from half of the amount currently.”
In the FNCCI’s official suggestion, it has sought a number of measures to be taken in income tax, value added tax (VAT), excise duty and customs duty provisions.
FNCCI has sought an increment in the taxable income threshold to Rs 300,000 per year for an individual and Rs 350,000 for a family. Similarly, it has demanded VAT exemption on construction materials to be used in hydropower projects and a waiver in excise duty on iron and steel, paints, cement, plastic bags and noodles. The apex body of the business community also demanded that customs duty on machineries and parts to be used for agriculture, tourism and mines be maintained at 1 percent. It sought procedural simplification during the payment of taxes.
FNCCI also asked for a package facility to promote investment in the hydropower sector to end load shedding, provision for less than 10 percent interest rate on loans for productive sectors and provision of ‘negative declaration’ of income source while depositing over Rs 1 million in banks and financial institutions.
FNCCI wishlist
Fixing of certain dates for the presentation of policies and programmes and the budget in the new constitution
Budget be presented in mid-March every year
Beginning of the fiscal year from mid-April
Increment in the taxable income threshold
VAT waiver in construction materials to be used in hydropower projects
Bank interest rate be less than 10 percent for productive sector loans
Source: Kantipur
