Govt not to probe investment in productive sectors

As the deadline for Voluntary Disclosure of Income Sources (VDIS) approaches nearer the business community is busy holding talks with Prime Minister Pushpa Kamal Dahal 'Prachanda' and Finance Minister Dr Baburam Bhattarai to resolve the issue of investigation into the sources of investments. Though the community was of the view that government define investment logistics, the government has assured it that sources of investment in hydropower and other productive sectors will not be investigated.
The extended VDIS deadline is March 14 -- just three days away.
In the talks between PM 'Prachanda' and the business community led by the Nepali private sector's umbrella organisation Federation of Nepalese Chamber of Commerce (FNCCI) president Kush Kujmar Joshi here today, private sector industry captains repeated their concern over the propopsed investigation into past investments that are already in the tax net.
Finance Minister Dr Bhattarai, who was also present in the meeting with the business community's Confederation of Nepalese Industrialists (CNI), Nepal Chambers of Commerce (NCC), Hotel Association of Nepal (HAN), Nepal Export and Import Association (NEIA), Nepal Bankers' Association (NBA) and FNCCI, said that the government had brought the VDIS scheme to stop capital flight. "The government will not investigate sources of investment in hydropower and productive sectors," he assured.
"The government will bring relief packages to make an investment-friendly environment and promote more investment," Prime Minister 'Prachanda' said.
Meanwhile, another group of industrialists -- in a separate meeting with Finance Minister Dr Bhattarai -- demanded the government take action against to those who do not come under VDIS. A group of industrialists led by Krishna Acharya, president of Nepal National Industries and Business Association asked Dr Bhattarai to punish those who have amassed illegal money and protect the law-abiding ones. Dr Bhattarai assured them that the government would start taking strong action against evaders after March 14.
He said that the government would apply the soft touch in those investments that employ Nepali labourers and are export-oriented. "The government is planning to honour taxpayers from the next fiscal year," he added.
Inland Revenue Department director general Kapil Dev Ghimire said that the department was collecting information about those who have amassed illegal wealth but have not yet come under VDIS.
The government was successful in collecting Rs 1.42 billion -- according to its target -- till the first deadline of February 11 but after the deadline extension for one more month till March 14, the collection is not worth mentioning.