Pvt sector spells out wish list for budget 2012-13
KATHMANDU, JUN 27:
The private sector has asked the government to give priority to energy, employment generation, infrastructure development, export promotion and modernisation of agriculture in the budget for the next fiscal year.
The Federation of Nepalese Chambers of the Commerce and Industry (FNCCI) has suggested that the government build 400-500 MW storage type hydropower project and explore opportunities in alternative energy to address power crisis.
FNCCI President Suraj Vaidya requested the government to bring an investment-friendly budget. “The best way to increase revenue collection is helping industrial expansion with the introduction of an investment-friendly budget,” said Vaidya at a pre-budget discussion organised by FNCCI here on Tuesday.
The apex private sector body demanded establishment of special economic zones (SEZs) in six Tarai towns — Kakarbhitta, Biratnagar, Birgunj, Bhairahawa, Nepalgunj and Dhangadi — along with construction of another international airport in Nijgadh under the government-private sector partnership model.
Other FNCCI suggestions are amendment to the BOOT Act and giving the task of construction and management of regional international airports to the private sector. The private sector also urged budgetary allocation for land for an international trade centre, expansion of trade school and ‘one village, one product’ programmes, besides special package for the Far-West.
In its suggestions, FNCCI has sought a number of measures to be adopted in income tax, value added tax (VAT), excise duty and customs duty provisions. It has sought a hike in taxable-income threshold to Rs 300,000 per year for an individual and Rs 350,000 for a family. FNCCI is for the doubling of the threshold of large taxpayers from the existing Rs 250 million to Rs 500 million and income tax exemption for manufacturing sector for 5 to 10 years.
Amid the private sector’s increasing interest in the agriculture sector, FNCCI has asked the government to introduce a law on contract farming.
In its suggestion for employment generation, FNCCI has demanded ‘one enterprise, one union system’, endorsement of the SEZ Act, and an investor-friendly labour law, among others.
At the programme, entrepreneurs from various sectors sought special treatment and facilities for their businesses. Independent power producers (IPPs) asked the government to allocate Rs 100 billion for the development of hydropower, while real estate players warned of an economic mess if the government continues its tightening on real estate financing.
The private sector’s apex body also asked that a fiscal year be maintained from mid-April instead of the current mid-July. With delay in budget presentations in the last three years crippling the economy, the private sector has once again reiterated its demand of setting a certain date for the annual budget presentation.
FNCCI asked the government that the date for budget presentation be fixed for mid-March every year; budget discussion for a month until mid-April; and implementation of the budget from the beginning of the Nepali calendar year (Mid-April). “Starting a fiscal year from mid-July is scientifically incorrect.”
Finance Secretary Krishna Hari Baskota said FNCCI’s identification of priority areas was in line with the government vision. “The sectors suggested by the National Planning Commission mostly matches with FNCCI’s suggestions,” He said, disclosing that the size of the next fiscal year’s budget will be of around Rs 429 billion.
Source: The Kathmandu Post
