The chamber handed over memorandum to Finance Minister to address his demands in the budget.

The Nepal Chamber of Commerce has again drawn the attention of the Finance Minister saying that their suggestions in the budget have not been implemented.

The chamber handed over a seven-point memorandum to Finance Minister Janardan Sharma. The chamber demanded that the decision to increase the tax on electric vehicles mentioned in the budget be reversed and that the reference price be revoked by recognizing the value of LC and banking transactions at customs.

The chamber is of the view that the tax policy mentioned in the budget will further collapse the private sector. The chamber has also demanded that the VAT threshold be raised to rs 10 million as the current ceiling of Rs 5 million for value added tax purposes is too low in view of the rising exchange rate of foreign exchange and rising inflation.

While announcing to create a self-reliant economy by using domestically generated electricity, the chamber has said that additional customs and excise duty on electric vehicles is not practical.

The Nepal Chamber of Commerce has also drawn the attention of Finance Minister Sharma to create a conducive business environment for the private sector by maintaining a balance of payments and managing imports and encouraging exports.

Here are the suggestions and opinions of Nepal Chamber of Commerce:

Recognize LC and banking transaction value at the customs point and discard the reference price.

The current 5 million shillings for value added tax purposes is too low in view of the increase in the exchange rate of convertible foreign currency and rising inflation.

With the provision of 8 percent cash subsidy by the government for export promotion, this facility should be provided to small and medium industrialists as well as home and handicraft industrialists according to the value added.

Imports have been controlled due to the decline in foreign exchange reserves. As this has adversely affected the revenue as well, the balance of payments should be maintained and imports should be managed and exports should be encouraged.

Export incentives in government budget