Wednesday, June 19, 2013

CNI calls for industry-friendly budget, country needs Rs 75,000 billion to achieve $3,000 per capita

The country needs an investment of Rs 75,000 billion to achieve $3,000 per capita income, according to the private sector.
The country must set a target of achieving $3,000 per capita income in a decade, said vice president of Confederation of Nepalese Industries (CNI) Hari Bhakta Sharma, in a pre-budget interaction, organised by CNI, here, today.
“The government should bring a 'Vision-2080' with strategic planning to achieve the goal,” he said, adding that it should also encourage domestic industries to 'produce more' of what they can to substitute imports and promote exports. "The government should immediately bring long due laws related to the industrial sector to facilitate industries and create investment-friendly environment."
The government will bring the laws that are ready through ordinance, assured finance minister Shankar Koirala, addressing the private sector leaders.
The government will also concentrate its development expenditure, in the budget for next fiscal year 2013-14, in capital formation, he said, adding that the government will focus on development, besides prioritising energy, connectivity like roads and railways, tourism, and commercialisation of agriculture as the incumbent government is an apolitical one. "The government will promote liberal market economic policy — with a vital role for the private sector — through the budget."
It will bring a private sector-friendly fiscal policy that can boost investment and create employment, Koirala added.
Similarly, president emeritus of CNI Binod Chaudhary, on the occasion, asked the government to take a bold step to revive the economy. "Since the last six years the economy has taken a back seat," he said, adding that remittance-fuelled import that has boosted revenue has made successive governments complacent, pushing the country towards a remittance trap. "There is no investment as there was no pressure on the government to generate employment."
Revenue mobilisation cannot be a measuring rod for any government's success as was established by then finance minister Dr Baburam Bhattarai in 2008-09, Chaudhary, the first Nepali billionaire listed by Forbes magazine, added.
Delayed budget, failure in development budget spending, weak law and order situation and political parties' apathy towards economy has hit growth, though it has a huge potential in the country, said CNI president Narendra Kumar Basnyat.

'Outlaw donation'
KATHMANDU: The private sector has asked the finance minister to either outlaw donation or let them write it in their books. “It's high time, the government brought a policy on donation,” they said, adding that donation is one of the key factors that has been discouraging the private sector. As the election for the Constituent Assembly (CA) has been declared for November 19, the private sector is terrified of forceful donations by political parties, as in the past.

No change in VAT regime
KATHMANDU: Replying to the private sector’s demand for multiple value added tax (VAT) rates, the Finance Minister Shankar Prasad Koirala on Wednesday said that the government is not changing the current VAT threshold. “The government is not in a position to make changes in the VAT regime,” he added. The existing threshold for VAT registration is Rs 2 million and the business entities having transaction over the ceiling must pay 13 per cent VAT.

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