Due to the continued political tug-of-war, annual budget is going to suffer for the third consecutive yesr this time after the election of Constitutuent Assembly election in 2008.
One one hand UCPN-Maoists -- the largest party in the parliament -- is opposing to the idea of bringing the budget by the incumbent Madhav Kumar Nepal-led government and on the others, partners in government is 'extremly hopeful' that the same government will bring the budget on July 9 -- five days before the current fiscal year ends.
"The government will bring the budget on time," said Bharat Mohan Adhikari, former finance minister from CPN-UML. "Its a compulsion," he said adding that to make the institutional democracy functional, it's necessary to let the government bring the budget through the normal course.
The other faction of the government Nepal Congress (NC), though hopeful of political consensus, is ready to bring the budget through ordinancy, if UCPN-Maoists continue to obstruct the parliament.
"Though, ordinance is not a good option, we will be forced to bring the budget through ordinance," said Dr Ram Sharan Mahat, former finance minister from Nepal Congress (NC).
"It would be unfortunate that the political developments have taken over the economy," he added.
However, the UCPN-Maoist party has threatened to go to street and oppose in the parliament too. "This government has no moral and constitutional right to bring Programme and Policies, and budget both," said Dr Baburam Bhattarai, former finance minister from UCPN-Maoists.
"The Prime Minister has to fulfil a pledge to step down and make way for a national unity government," the Maoist ideologue said.
Prime Minister Madhav Kumar Nepal agreed on May 28 to resign as part of an 11th-hour deal after marathon round of talks to persuade the UCPN-Maoists to vote for an extension of parliament's term and avert a political crisis.
"The agreement was to pave way for the national consensus government," Dr Bhattarai added.
The parliament was scheduled to begin on June 18 for the pre-budget debate on the government's budget proposals but that has been delayed and the fiscal year is coming to an end on July 16. The Constitution has made an arrangement of pre-budget discussion so the elected members of the CA can air the concerns of their constituenties. But its is unfortunate that this year too, like the earlier years, the pre-budget discussions could not be hold due to political dead-lock.
The parties in government are adament on bringing the budget despite UCPN-Maoists' obstruction. "If the Maoists continue to obstruct, worst-come-worst, a year before's experience will repeat," Dr Mahat said. He had brought a Bill on Accounts then.
However, the Bill could be brought as a means to give legality to administrative expenses for the short-term of four months only and the full-fledged budget has to be brought to replace it. The absence of budget cannot stop the government collect revenue but it cannot spend.
Showing posts with label Finance Minister Dr Baburam Bhattarai. Show all posts
Showing posts with label Finance Minister Dr Baburam Bhattarai. Show all posts
Monday, June 21, 2010
Monday, February 15, 2010
Bhattarai for expanding rural access to finance, says no to donors prescription
Former finance minister and vice-chairman of the Unified Nepal Communist Party of Nepal (Maoist) Dr Baburam Bhattarai today said that the government must bring its own policy to expand access to finance in the rural areas. "The prescriptions from the donors won't work," he said.
Addressing the second Microfinance Summit here, he stressed on institutional investment for rural farmers and small entrepreneurs. The policy should focus on women as there is a rare incident of default by women entrepreneurs, he said adding that the policy should focus on indigenous, dalits and janajatis and extend their reach to finance. "There is no alternative to enabling the lower strata of society through microfinance to uplift their living standards," he said.
He also urged enough research on microfinance and target groups before starting any programmes for them. "Instead of depending on foreign jobs and consumption, we should focus on savings and production to develop an independent economy," he added. "There is no option other than enabling people through microfinance for the socio-economic transformation of society."
"Half of the total population has no access to formal financial channels," Mercy Corps deputy director Sanjaya Karki said, presenting his paper on 'Microfinannce in value chain'. Due to lack of access to formal financial channels, the majority of the rural populace still has to depend on local merchants, he said adding that these merchants charge higher interest rates.
Instead, the farmers are benefitting from microfinance, Karki said adding that Agriculture Development Bank and credit and cooperatives are giving service through price value chain.
Senior Programme Officer of GTZ-Include, Roshan Shrestha said the price value chain would be more effective if cooperatives involved in production and processing, implement it. Presenting his paper on 'Business Model for Value Chain finance through cooperatives,' he said that cooperatives can be more effective. The cooperative invloved in production can paly a role of bridge between the small producers and finance companies and help price-value chain, he said. "But there should be legal provision. Except lending, cooperatives can also help the target groups by serching for them new markets and training them," he added.
Commenting on the papers, Dr Purushottam Shrestha, CEO of NNMB, said that the central bank and the government have neglected the microfinance sector. "The government that talks about poverty alleviation has not said a single word in the budget about microfinance," he complained.
Saliya Ranasinghe, consultant, said that the small farmers might have also been cheated in the microfinance.
The second day of the Microfinance Summit 2010 also saw various working papers and the participants actively discussed the papers. Graham A N Wright, director of Micro save; Megha Raj Gajurel, senior manager at RMDC; Ralf Radeermacher, director at Micro Insurance Academy and Anurag Mishra of Standard Chartered bank also presented their papers.
Wednesday, July 15, 2009
Dr Bhattarai lambasts government, budget
Dr Baburam Bhattarai, the first finance minister of the Republic of Nepal and one of the ideologues of the CPN-Maoist today lambasted the government and the budget presented by his successor Surendra Pandey on Monday.
"We do not recognise this puppet government and its budget," he said bitterly adding that the budget that Pandey claims to be 'socialist' has failed the people. "It could not address the rising price hike and the employees' pay scale."
"The budget has announced cheap and popular programmes that can neither fuel growth nor generate employment," he added. Dr Bhattarai opined that the government has tried to impress by aping some programmes of the Maoists.
To match Dr Bhattarai's claim in the last budget of generating 10,000 MW of electricity in 10 years Maoists, Pandey has in his bag a programme which he claims will generate 25,000 MW of electricity in 20 years.
"The budget is full of ridiculous claims and plans. It has also reduced the allocations to agriculture and social security and increased the deficit," Dr Bhattarai added.
The Maoists opened the House to let the CPN-UML-led government present the programmes and policies after a 40-day disruption. They have been not taking part in the budget discussions also to protest what they call President Dr Ram Baran Yadav's 'unconstitutional' reinstatement of Army chief General Rukmangad Katuwal.
"We do not recognise this puppet government and its budget," he said bitterly adding that the budget that Pandey claims to be 'socialist' has failed the people. "It could not address the rising price hike and the employees' pay scale."
"The budget has announced cheap and popular programmes that can neither fuel growth nor generate employment," he added. Dr Bhattarai opined that the government has tried to impress by aping some programmes of the Maoists.
To match Dr Bhattarai's claim in the last budget of generating 10,000 MW of electricity in 10 years Maoists, Pandey has in his bag a programme which he claims will generate 25,000 MW of electricity in 20 years.
"The budget is full of ridiculous claims and plans. It has also reduced the allocations to agriculture and social security and increased the deficit," Dr Bhattarai added.
The Maoists opened the House to let the CPN-UML-led government present the programmes and policies after a 40-day disruption. They have been not taking part in the budget discussions also to protest what they call President Dr Ram Baran Yadav's 'unconstitutional' reinstatement of Army chief General Rukmangad Katuwal.
Thursday, July 2, 2009
NC protests Finance Ministry's fiscal indiscipline
The Finance Ministry has distributed around Rs 560 million in the last month of the current fiscal year. A group of Nepali Congress (NC) Constituent Assembly (CA) members today remonstrated with Prime Minister Madhav Kumar Nepal over the Finance Ministry's distribution of Rs 560 million in the last month of the current fiscal year, saying they feared embezzlement of funds.
"We have complained to the PM about the possible embezzlement of funds as the money was distributed at the fag-end of the fiscal year," said an NC Constituent Assembly member. He added that the PM mereley came back at them with that he had no inkling of the distribution of the budget at the end of the fiscal year. "The budget has been distributed according to the all-party consensus," the PM said.
However, the Nepali Congress CA members said there was no such consensus and that the decision was arbitrary.
The fund was distributed at the request of some of the CPN-UML's CA members. "However, the ministry of Local Development has not approved any projects at the end of the fiscal year," the NC CA member said adding that the trend of the fund distribution arbitrarily would lead to fiscal indiscipline.
Dr Baburam Bhattarai has also been accused of distributing Rs 1.10 billion while leaving the office. "The present finance minister Surendra Pandey is following in the footsteps of Dr Bhattarai and creating fiscal indiscipline at the end of the fiscal year," the NC CA members alleged.
"We have complained to the PM about the possible embezzlement of funds as the money was distributed at the fag-end of the fiscal year," said an NC Constituent Assembly member. He added that the PM mereley came back at them with that he had no inkling of the distribution of the budget at the end of the fiscal year. "The budget has been distributed according to the all-party consensus," the PM said.
However, the Nepali Congress CA members said there was no such consensus and that the decision was arbitrary.
The fund was distributed at the request of some of the CPN-UML's CA members. "However, the ministry of Local Development has not approved any projects at the end of the fiscal year," the NC CA member said adding that the trend of the fund distribution arbitrarily would lead to fiscal indiscipline.
Dr Baburam Bhattarai has also been accused of distributing Rs 1.10 billion while leaving the office. "The present finance minister Surendra Pandey is following in the footsteps of Dr Bhattarai and creating fiscal indiscipline at the end of the fiscal year," the NC CA members alleged.
Friday, May 8, 2009
Taxpayers taught ropes of VAT e-filing
Inland Revenue Offices (IRO), Area No 1 and 2, Kathmandu and Lazimpat office organised a demonstration programme on e-filing of value added tax (VAT) for taxpayers here today.
Taxpayers, auditors and officials of the offices took active part in the programme.
Though the government has started e-filing of VAT since this fiscal year, very few taxpayers are using the facility.
"It is for the benefit of the taxpayers," said Shanta Bahadur Shrestha, director general of the Inland Revenue Departmant (IRD). "Taxpayers need not go to the tax office to pay the VAT if they learn the e-filing system."
However, even now very few tax payers are finding it convient to use the e-filing of VAT that saves time, energy and prevents administrative hassles. The use of e-technology in the tax administration has also reduced the workload of employees and increased their efficiency.
The training was organised under the Taxpayer Education Programme of IRD that has from this week started action against around 6,400 Voluntary Disclosure of Income Sources (VDIS) defaulters. Some of the suspected businesses were raided last week. "We are still investigating," Shrestha added.
IRD collected a total of Rs 1.51 billion under the scheme from around 3,600 people, though it had compiled a list of 10,000 people. The government had extended the deadline by a month after the industry captains urged to accede to their request.
In the first phase, the government managed to rake in Rs 1.42 billion. The original deadline had expired on February 11. However, the extension came in handy for the government, if the collections are anything to go by. It collected an additional Rs 467.8 million from 1,600 people within the extended period.
Finance Minister Dr Baburam Bhattarai had announced the scheme during his budget speech on September 19, 2008.
Taxpayers, auditors and officials of the offices took active part in the programme.
Though the government has started e-filing of VAT since this fiscal year, very few taxpayers are using the facility.
"It is for the benefit of the taxpayers," said Shanta Bahadur Shrestha, director general of the Inland Revenue Departmant (IRD). "Taxpayers need not go to the tax office to pay the VAT if they learn the e-filing system."
However, even now very few tax payers are finding it convient to use the e-filing of VAT that saves time, energy and prevents administrative hassles. The use of e-technology in the tax administration has also reduced the workload of employees and increased their efficiency.
The training was organised under the Taxpayer Education Programme of IRD that has from this week started action against around 6,400 Voluntary Disclosure of Income Sources (VDIS) defaulters. Some of the suspected businesses were raided last week. "We are still investigating," Shrestha added.
IRD collected a total of Rs 1.51 billion under the scheme from around 3,600 people, though it had compiled a list of 10,000 people. The government had extended the deadline by a month after the industry captains urged to accede to their request.
In the first phase, the government managed to rake in Rs 1.42 billion. The original deadline had expired on February 11. However, the extension came in handy for the government, if the collections are anything to go by. It collected an additional Rs 467.8 million from 1,600 people within the extended period.
Finance Minister Dr Baburam Bhattarai had announced the scheme during his budget speech on September 19, 2008.
Monday, April 20, 2009
Peeved NC may boycott NDF meet next month
Main opposition Nepali Congress (NC) may boycott the Nepal Development Forum (NDF) meeting, slated to be held in the capital from May 12 to 14
The party is peeved since it was not consulted while preparing the strategy document that will be presented at the forum. Dr Ram Sharan Mahat, NC leader and an ex-Finance Minister, blamed the Maoist-led government for lack of consensus on the Nepal Development Strategy Paper (NDSP), which will be table at the NDF meeting. "A vision paper calls for consensus among parties,” he alleged.
As per the tradition, development agenda has to be discussed with the donors on the basis of consensus. “Strategy papers are never kept secret. They should be discussed with the opposition, intelligentsia, civil society, economists and development practitioners," explained Dr Mahat. The senior NC leader is also cut up with the pre-consultation meeting that was held recently. “The posting on the NDF website is a clumsy political slogan. It lacks the rigour of analysis,” he alleged.
The NDSP is tipped to replace the current Three Year Interim Plan (TYIP) by next year. The documents are allegedly mum on the agreement reached between the government and donors in mini-NDF, which was held last year. An understanding has been reached on post-conflict rehabilitation and to fast track growth, including plans to hold an international conference to solicit aid. He also advised the donors to think of the consistency of programes.
But, Dr Mahat is clearly not done yet with the tirade against the government. “Ironically, the document is silent on major issues like infrastructure, social sector, peace and development, poverty alleviation and reforms in the financial sector. Also, the past progress has been glossed over,” pointed out Dr Mahat, an ardent advocate of free market. He claimed that the estimate of growth and attendant macro economic variables was exaggerated in the document.
Professor Dr Bishwambher Pyakurel, a senior economist, concurred with Dr Mahat’s perception. "The government has presented a grossly distorted statistics that undermines growth in a big way," he said. The Maoist-led government has been blamed for its failure to create employment and control price rise. The duo advocated additional homework on the document since it showcased immediate reconstruction and growth.
The party is peeved since it was not consulted while preparing the strategy document that will be presented at the forum. Dr Ram Sharan Mahat, NC leader and an ex-Finance Minister, blamed the Maoist-led government for lack of consensus on the Nepal Development Strategy Paper (NDSP), which will be table at the NDF meeting. "A vision paper calls for consensus among parties,” he alleged.
As per the tradition, development agenda has to be discussed with the donors on the basis of consensus. “Strategy papers are never kept secret. They should be discussed with the opposition, intelligentsia, civil society, economists and development practitioners," explained Dr Mahat. The senior NC leader is also cut up with the pre-consultation meeting that was held recently. “The posting on the NDF website is a clumsy political slogan. It lacks the rigour of analysis,” he alleged.
The NDSP is tipped to replace the current Three Year Interim Plan (TYIP) by next year. The documents are allegedly mum on the agreement reached between the government and donors in mini-NDF, which was held last year. An understanding has been reached on post-conflict rehabilitation and to fast track growth, including plans to hold an international conference to solicit aid. He also advised the donors to think of the consistency of programes.
But, Dr Mahat is clearly not done yet with the tirade against the government. “Ironically, the document is silent on major issues like infrastructure, social sector, peace and development, poverty alleviation and reforms in the financial sector. Also, the past progress has been glossed over,” pointed out Dr Mahat, an ardent advocate of free market. He claimed that the estimate of growth and attendant macro economic variables was exaggerated in the document.
Professor Dr Bishwambher Pyakurel, a senior economist, concurred with Dr Mahat’s perception. "The government has presented a grossly distorted statistics that undermines growth in a big way," he said. The Maoist-led government has been blamed for its failure to create employment and control price rise. The duo advocated additional homework on the document since it showcased immediate reconstruction and growth.
NAC to relaunch Mumbai flight from May 1
Nepal Airlines Corporation (NAC) is relaunching its Mumbai flight from May 1.
"NAC will fly twice a week on the Kathmandu-Mumbai-Kathmandu route," said Raju K C, spokesperson for the national flag carrier.
"Five days a week it will fly on Kathmandu-New Delhi-Kathmandu route, except Mondays and Fridays when it will fly to Mumbai," he said adding that the Mumbai flight, contrary to the New Delhi one in the evenings, will be in the afternoon.
The flight duration of Mumbai-Kathmandu is a little over two hours and it will take off at 1.25 pm from Kathmandu and land at 3.45 pm in Mumbai. "In the evening, the aircraft returns at 4.50 pm from Mumbai and lands at 7.55 pm at Tribhuwan International Airport," K C said.
NAC has also offered discount rates on its ticket on the occasion of the relaunch of the Mumbai flight. Earlier, NAC -- then RNAC -- used to fly on the route regularly from 1992 to 2007. Currently, it is flying to six international destinations and re-launching the flight to Mumbai will make it the seventh international destination.
The ailing national carrier has only two Boeing 757s -- Gandaki (RA 217) and Karnali (RA 218) -- since long and it is planning to buy more aircraft after a bid to lease aircraft failed last month.
In the late '80s, the then RNAC acquired two Boeing 757s on lease -- Karnali in 1987 and Gandaki in 1988. After, the movement in 1990, successive governments of Nepali Congress and Communist Party of Nepal (UML) had leased aircraft from Lauda Airlines and China South Western Airlines amid controversy.
The present Maoist-led government has decided to buy brand new aircraft instead of leasing them like its predecessors. In the budget for the fiscal year 2008-09, Finance Minister Dr Baburam Bhattarai assured that the government will guarantee to acquire necessary funding to purchase two large aircraft for NAC to enhance international seat capacity and make services timely and reliable.
With work in progress for Nepal Tourism Year 2011, Nepal badly needs new aircraft to boost tourism.
"NAC will fly twice a week on the Kathmandu-Mumbai-Kathmandu route," said Raju K C, spokesperson for the national flag carrier.
"Five days a week it will fly on Kathmandu-New Delhi-Kathmandu route, except Mondays and Fridays when it will fly to Mumbai," he said adding that the Mumbai flight, contrary to the New Delhi one in the evenings, will be in the afternoon.
The flight duration of Mumbai-Kathmandu is a little over two hours and it will take off at 1.25 pm from Kathmandu and land at 3.45 pm in Mumbai. "In the evening, the aircraft returns at 4.50 pm from Mumbai and lands at 7.55 pm at Tribhuwan International Airport," K C said.
NAC has also offered discount rates on its ticket on the occasion of the relaunch of the Mumbai flight. Earlier, NAC -- then RNAC -- used to fly on the route regularly from 1992 to 2007. Currently, it is flying to six international destinations and re-launching the flight to Mumbai will make it the seventh international destination.
The ailing national carrier has only two Boeing 757s -- Gandaki (RA 217) and Karnali (RA 218) -- since long and it is planning to buy more aircraft after a bid to lease aircraft failed last month.
In the late '80s, the then RNAC acquired two Boeing 757s on lease -- Karnali in 1987 and Gandaki in 1988. After, the movement in 1990, successive governments of Nepali Congress and Communist Party of Nepal (UML) had leased aircraft from Lauda Airlines and China South Western Airlines amid controversy.
The present Maoist-led government has decided to buy brand new aircraft instead of leasing them like its predecessors. In the budget for the fiscal year 2008-09, Finance Minister Dr Baburam Bhattarai assured that the government will guarantee to acquire necessary funding to purchase two large aircraft for NAC to enhance international seat capacity and make services timely and reliable.
With work in progress for Nepal Tourism Year 2011, Nepal badly needs new aircraft to boost tourism.
Sunday, April 19, 2009
Record revenue collection but government fails to spend Rs 25 billion for development works
The Finance Ministry has managed to collect record revenue during the month of Chaitra (mid-March to mid-April), exceeding its target.
The ministry collected 39.3 per cent higher revenue at Rs 98.67 billion as per year-on-year record. When Finance Minister Dr Baburam Bhattarai tabled his maiden budget on September 19 last year, the revenue target of Rs 147.72 billion was billed ambitious. The budget for the current fiscal stands at Rs 236.15 billion. “The collection has touched Rs 98.67 billion in only nine months. It has exceeded the target, which was pegged at Rs 93 billion,” said Krishna Hari Baskota, acting revenue secretary. He attributed the “good show” to able leadership, growing control over corruption and a cordial relationship between the Maoist-led government and private sector. “The private sector has been supportive. While, the record collection suggests that the environment is business friendly,” he added.
Earlier in Falgun, the ministry mopped up 38.6 per cent of revenue.Despite the impressive collection, the ruling coalition has failed to utilise the sum for development work, which in turn has taken its toll on the GDP growth. “Consequently, the income generation will be hit hard, leading to spiralling unemployment,” explained Dr Shanker Sharma, former vice-president, National Planning Commission (NPC).
The Finance Minister has affirmed of giving top priority to more employment opportunities in the next budget.
“But if the government goes on a spending spree in the last quarter of this fiscal, then it may encourage inefficiency,” he added. Though the treasury has Rs 25 billion, it is lying idle for months.
The ministry collected 39.3 per cent higher revenue at Rs 98.67 billion as per year-on-year record. When Finance Minister Dr Baburam Bhattarai tabled his maiden budget on September 19 last year, the revenue target of Rs 147.72 billion was billed ambitious. The budget for the current fiscal stands at Rs 236.15 billion. “The collection has touched Rs 98.67 billion in only nine months. It has exceeded the target, which was pegged at Rs 93 billion,” said Krishna Hari Baskota, acting revenue secretary. He attributed the “good show” to able leadership, growing control over corruption and a cordial relationship between the Maoist-led government and private sector. “The private sector has been supportive. While, the record collection suggests that the environment is business friendly,” he added.
Earlier in Falgun, the ministry mopped up 38.6 per cent of revenue.Despite the impressive collection, the ruling coalition has failed to utilise the sum for development work, which in turn has taken its toll on the GDP growth. “Consequently, the income generation will be hit hard, leading to spiralling unemployment,” explained Dr Shanker Sharma, former vice-president, National Planning Commission (NPC).
The Finance Minister has affirmed of giving top priority to more employment opportunities in the next budget.
“But if the government goes on a spending spree in the last quarter of this fiscal, then it may encourage inefficiency,” he added. Though the treasury has Rs 25 billion, it is lying idle for months.
Wednesday, April 1, 2009
NDF meet to focus on development
The government will present four papers during the Nepal Development Forum (NDF) meet that will be held here from May 12 to 14.
"During the interaction with the donors, the government papers will focus on Nepal's development strategy, economic restructuring, foreign aid policy and its effectiveness and opportunities for private sector investment," ," said Finance Minister Dr Baburam Bhattarai today.
Earlier, the NDF was organised in 2004. The government also held a Donors' Consultation Meet -- a mini-NDF -- in 2008.
The finance minister said the NDF will focus on three areas -- convincing donors to assist Nepal in its priority areas for the implementation of Nepal's development strategy prepared for the transitional period, increase more understanding between the government and the donors and prepare a policy to develop Nepal as a preferred investment destination.
The country is reeling under a energy crisis and lack of infrastructure for development that needs huge investment.
"For development, Nepal needs peace and for peace it needs development. Thus the theme of the NDF will be 'The basis of New Nepal: Peace and socio-economic tranformation'," he said adding that before the finalisation of the strategy papers a massive consultation round will be held in five different districts from east to west.
Nepal has been taking foreign aid since long, making the country more dependent on aid. Dr Bhattarai opined that Nepal currently needs aid to lessen dependence on foreign aid. "Times have changed and Nepal now needs more trade opportunities rather than aid," he added.
The finance ministry has invited 40 bilateral and multilateral donors and five Export-Import Banks from various countries -- a total of 45 participants -- to take part in the Nepal Development Forum meet that will be inaugurated by the Prime Minister Pushpa Kamal Dahal 'Prachanda'.
The finance minister today morning also held a consultation meeting with former finance ministers and economic experts.
"During the interaction with the donors, the government papers will focus on Nepal's development strategy, economic restructuring, foreign aid policy and its effectiveness and opportunities for private sector investment," ," said Finance Minister Dr Baburam Bhattarai today.
Earlier, the NDF was organised in 2004. The government also held a Donors' Consultation Meet -- a mini-NDF -- in 2008.
The finance minister said the NDF will focus on three areas -- convincing donors to assist Nepal in its priority areas for the implementation of Nepal's development strategy prepared for the transitional period, increase more understanding between the government and the donors and prepare a policy to develop Nepal as a preferred investment destination.
The country is reeling under a energy crisis and lack of infrastructure for development that needs huge investment.
"For development, Nepal needs peace and for peace it needs development. Thus the theme of the NDF will be 'The basis of New Nepal: Peace and socio-economic tranformation'," he said adding that before the finalisation of the strategy papers a massive consultation round will be held in five different districts from east to west.
Nepal has been taking foreign aid since long, making the country more dependent on aid. Dr Bhattarai opined that Nepal currently needs aid to lessen dependence on foreign aid. "Times have changed and Nepal now needs more trade opportunities rather than aid," he added.
The finance ministry has invited 40 bilateral and multilateral donors and five Export-Import Banks from various countries -- a total of 45 participants -- to take part in the Nepal Development Forum meet that will be inaugurated by the Prime Minister Pushpa Kamal Dahal 'Prachanda'.
The finance minister today morning also held a consultation meeting with former finance ministers and economic experts.
Saturday, March 28, 2009
Baburam effect pushes market up
The market seems to have reacted to the finance minister Dr Baburam Bhattarai's assurance -- that the government is committed to develop the capital market -- as the sole secondary market, Nepse this week gained 8.71 points to close at 675.30 points from the Sunday's opening of 666.59 points.
The 78-scrip sensitive index -- considered the blue chip shares in the domestic market -- also gained 1.92 points to 177.73 points from Sunday's opening of 175.81 points. Similarly, the float index -- calculated on the basis of real transactions -- gained 0.51 point to 65.54 points from the Sunday's opening of 65.03 points.
However, the total transaction amount for this week decreased by 4.92 per cent to Rs 279.46 million from last week's transaction of Rs 293.93 million. The contribution of Group-A companies also dropped to 69.19 per cent against last week's 73.28 per cent.
The four-day session this week -- due to public holiday on Thursday -- started in green as on Sunday evening, the Nepse surged by 19.91 points to 683.50 points from the morning's opening of 666.50 points. Though, Monday witnessed a loss of 7.19 points to 676.31 points, the Nepse tried to rebound on Tuesday as it gained 1.69 points to 678 points. But the market closed at 675.30 points, shedding 2.70 points on Wednesday.
Of the nine-sub groups' indices, the four sub-groups -- commercial banks, others, hydropower companies and manufacturing -- surged to push the Nepse up. But three sub-groups -- development banks, finance companies and insurance companies -- lost whereas two sub-groups -- hotels and trading at 352.88 points and 213.82 points -- remained unchanged.
The other sub-group gained 17.62 points -- the highest during the week -- to 657.94 points, whereas the manufacturing sub-group -- traded in many weeks -- gained 15.77 points to 419.87 points. The commercial banks group gained 13.35 points to 669.71 points and hydropower group gained 3.24 points to 891.10 points.
However, the development banks sub-group's index plunged by a whopping 39.05 points to 870.76 points and the finance companies sub-group shed 6.94 points to 772.18 points. Similarly, the insurance companies sub-group lost 4.55 points to 656.59 points.
This week's top performers were Siddhartha Development Bank (with Rs 44.06 million), Bank of Kathmandu (with Rs 32.44 million), Standard Chartered Bank Nepal (with Rs 31.68 million), Nepal Development and Employment Promotion Bank (with Rs 16.65 million) and NIC Bank (with Rs 11.72 million).
Over 50.40-million-unit bonus shares of Everest Insurance, NMB Bank, NIC Bank and Himalayan Bank, and 6,00,000-unit of primary shares of Purbanchal Gramin Bikas Bank were listed this week.
The 78-scrip sensitive index -- considered the blue chip shares in the domestic market -- also gained 1.92 points to 177.73 points from Sunday's opening of 175.81 points. Similarly, the float index -- calculated on the basis of real transactions -- gained 0.51 point to 65.54 points from the Sunday's opening of 65.03 points.
However, the total transaction amount for this week decreased by 4.92 per cent to Rs 279.46 million from last week's transaction of Rs 293.93 million. The contribution of Group-A companies also dropped to 69.19 per cent against last week's 73.28 per cent.
The four-day session this week -- due to public holiday on Thursday -- started in green as on Sunday evening, the Nepse surged by 19.91 points to 683.50 points from the morning's opening of 666.50 points. Though, Monday witnessed a loss of 7.19 points to 676.31 points, the Nepse tried to rebound on Tuesday as it gained 1.69 points to 678 points. But the market closed at 675.30 points, shedding 2.70 points on Wednesday.
Of the nine-sub groups' indices, the four sub-groups -- commercial banks, others, hydropower companies and manufacturing -- surged to push the Nepse up. But three sub-groups -- development banks, finance companies and insurance companies -- lost whereas two sub-groups -- hotels and trading at 352.88 points and 213.82 points -- remained unchanged.
The other sub-group gained 17.62 points -- the highest during the week -- to 657.94 points, whereas the manufacturing sub-group -- traded in many weeks -- gained 15.77 points to 419.87 points. The commercial banks group gained 13.35 points to 669.71 points and hydropower group gained 3.24 points to 891.10 points.
However, the development banks sub-group's index plunged by a whopping 39.05 points to 870.76 points and the finance companies sub-group shed 6.94 points to 772.18 points. Similarly, the insurance companies sub-group lost 4.55 points to 656.59 points.
This week's top performers were Siddhartha Development Bank (with Rs 44.06 million), Bank of Kathmandu (with Rs 32.44 million), Standard Chartered Bank Nepal (with Rs 31.68 million), Nepal Development and Employment Promotion Bank (with Rs 16.65 million) and NIC Bank (with Rs 11.72 million).
Over 50.40-million-unit bonus shares of Everest Insurance, NMB Bank, NIC Bank and Himalayan Bank, and 6,00,000-unit of primary shares of Purbanchal Gramin Bikas Bank were listed this week.
Friday, March 27, 2009
FM to wage war on Money laundering
Finance Minister Dr Baburam Bhattarai here today said that money laundering could become a grave threat to the country.
The government will bring strong measures to check money laundering through tax evasion and illegally amassing wealth, he said adding that the regulation against money laundering was on the anvil.
The Financial Information Unit under the central bank investigates complaints of money laundering. "The department will be strengthened to check the crime," Dr Bhattarai said while inaugurating a one-day seminar on money laundering organized by Nepal Rastra Bank here today.
"Though Nepal has an Anti-Money Laundering Act, it lacks regulation", said Nepal Rastra Bank (NRB) governor Dipendra Bahadur Chettri. "Nepal can learn from international experience and its own experience as well on how to combat money laundering," he added.
"Amassing wealth overnight without proper source of income is rampant in Nepal. This phenomenon needs to be checked for the better health of the financial market," Chhetri said.
"Financial institutions are being used in illegal channelling of money," said NRB deputy governor K B Manandhar. Thus, banks can help in the implementation of the Anti-Money Laundering Act," he added.Members of the Constitutent Assembly (CA) and representatives of regulatory authorities took part in the seminar.
The government will bring strong measures to check money laundering through tax evasion and illegally amassing wealth, he said adding that the regulation against money laundering was on the anvil.
The Financial Information Unit under the central bank investigates complaints of money laundering. "The department will be strengthened to check the crime," Dr Bhattarai said while inaugurating a one-day seminar on money laundering organized by Nepal Rastra Bank here today.
"Though Nepal has an Anti-Money Laundering Act, it lacks regulation", said Nepal Rastra Bank (NRB) governor Dipendra Bahadur Chettri. "Nepal can learn from international experience and its own experience as well on how to combat money laundering," he added.
"Amassing wealth overnight without proper source of income is rampant in Nepal. This phenomenon needs to be checked for the better health of the financial market," Chhetri said.
"Financial institutions are being used in illegal channelling of money," said NRB deputy governor K B Manandhar. Thus, banks can help in the implementation of the Anti-Money Laundering Act," he added.Members of the Constitutent Assembly (CA) and representatives of regulatory authorities took part in the seminar.
Saturday, March 21, 2009
Investors 'still' feel jittery
The investors are still feeling jittery as the Nepse -- the sole secondary market -- index did not show any encouraging sign this week too.
Of the nine-sub group indices, trading and manufacturing groups did not see any trading of their scrips this week. Three -- hydropower, hotel and others -- groups gained while remaining four -- development banks, insurance companies, finance companies and commercial banks -- groups lost.
The news of 35 per cent cash dividend by Chilime Hydro power and 25 per cent cash dividend by Nepal Telecomm (NT) has tried to boost the confidence of investors as the hydro power and others group gained this week by an impressive 49.79 points to 887.86 points and 2.35 points to 640.32 points. Similarly hotels group also gained 5.82 points to 352.88 points.
But the development banks group lost by a whopping 48.28 points to 909.81 points, insurance companies group lost by 20.33 points to 661.14 points, finance companies group lost by 13.43 points to 779.12 points and commercial banks group lost by 0.46 point to end at 656.36 points.
The 78-scrip sensitive index -- considered blue chip shares in the domestic market - lost 1.09 points to drop to 175.81 points from Sunday's opening of 176.90 points. Similarly, the float index -- calculated on the basis of real transactions -- also lost 0.28 point to drop to 65.03 points from Sunday's opening of 65.31 points.
However, the transaction amount for this week increased by 6.40 per cent to Rs 293.93 million from last week's Rs 276.25 million. Group-A companies gained their dominance back in the total transaction as they contributed to 73.28 per cent against last week's 48.53 per cent.
This week's top performers were Siddhartha Development Bank (with Rs 44.96 million), Bank of Kathmandu (with Rs 24.01 million), Nepal SBI Bank (with Rs 17.32 million), United Finance (with Rs 17.11 million) and Annapurna Development Bank (with Rs 16.04 million).
Will it won't it?
KATHMANDU: Finance minister Dr Baburam Bhattarai on Thursday visited the Nepal Stock Exchange (Nepse) for the first time since he became the finance minister to boost the confidence of investors. He has been blamed for not being serious in the development of capital market that could be a wheel to change in the small economy like Nepal. He tried to assure that government was committed to the development of the capital market and its the key to industrialisation. Will his assurance boost the investors' confidence or not next week's performance will make it clear.
Over 10 million-unit shares added
KATHMANDU: The secondary market was also flooded with primary, bonus and rights shares in the month of Falgun. Over 10 million shares, including 4 million-unit of primary shares and 5.77 million-unit of bonus shares apart from a huge number of rights shares were listed during the month, said the Nepse. The number of listed companies also touched 152 by the mid-March.
The month of Falgun (mid-February to mid March) witnessed a transaction of Rs 1.16 billion that is 15.65 per cent higher than a month earlier. A total of 17,62,000-unit shares changed hands during the month that saw only 17-day trading.
However, the Nepse index was at 667.20 points and the market capitalisation was at Rs 4.23 trillion -- that is 44.66 per cent to the GDP -- and an increase of 0.55 per cent from a month earlier, the Nepse figures reveal.
Of the nine-sub group indices, trading and manufacturing groups did not see any trading of their scrips this week. Three -- hydropower, hotel and others -- groups gained while remaining four -- development banks, insurance companies, finance companies and commercial banks -- groups lost.
The news of 35 per cent cash dividend by Chilime Hydro power and 25 per cent cash dividend by Nepal Telecomm (NT) has tried to boost the confidence of investors as the hydro power and others group gained this week by an impressive 49.79 points to 887.86 points and 2.35 points to 640.32 points. Similarly hotels group also gained 5.82 points to 352.88 points.
But the development banks group lost by a whopping 48.28 points to 909.81 points, insurance companies group lost by 20.33 points to 661.14 points, finance companies group lost by 13.43 points to 779.12 points and commercial banks group lost by 0.46 point to end at 656.36 points.
The 78-scrip sensitive index -- considered blue chip shares in the domestic market - lost 1.09 points to drop to 175.81 points from Sunday's opening of 176.90 points. Similarly, the float index -- calculated on the basis of real transactions -- also lost 0.28 point to drop to 65.03 points from Sunday's opening of 65.31 points.
However, the transaction amount for this week increased by 6.40 per cent to Rs 293.93 million from last week's Rs 276.25 million. Group-A companies gained their dominance back in the total transaction as they contributed to 73.28 per cent against last week's 48.53 per cent.
This week's top performers were Siddhartha Development Bank (with Rs 44.96 million), Bank of Kathmandu (with Rs 24.01 million), Nepal SBI Bank (with Rs 17.32 million), United Finance (with Rs 17.11 million) and Annapurna Development Bank (with Rs 16.04 million).
Will it won't it?
KATHMANDU: Finance minister Dr Baburam Bhattarai on Thursday visited the Nepal Stock Exchange (Nepse) for the first time since he became the finance minister to boost the confidence of investors. He has been blamed for not being serious in the development of capital market that could be a wheel to change in the small economy like Nepal. He tried to assure that government was committed to the development of the capital market and its the key to industrialisation. Will his assurance boost the investors' confidence or not next week's performance will make it clear.
Over 10 million-unit shares added
KATHMANDU: The secondary market was also flooded with primary, bonus and rights shares in the month of Falgun. Over 10 million shares, including 4 million-unit of primary shares and 5.77 million-unit of bonus shares apart from a huge number of rights shares were listed during the month, said the Nepse. The number of listed companies also touched 152 by the mid-March.
The month of Falgun (mid-February to mid March) witnessed a transaction of Rs 1.16 billion that is 15.65 per cent higher than a month earlier. A total of 17,62,000-unit shares changed hands during the month that saw only 17-day trading.
However, the Nepse index was at 667.20 points and the market capitalisation was at Rs 4.23 trillion -- that is 44.66 per cent to the GDP -- and an increase of 0.55 per cent from a month earlier, the Nepse figures reveal.
Thursday, March 19, 2009
Capital market key to change: FM
Finance minister Dr Baburam Bhattarai today tried to boost the confidence of investors saying that government was committed to the development of the capital market. "Capital market is the key to industrialisation," Dr Bhattarai said during his first visit to the Nepal Stock Exchange Ltd (Nepse) -- the sole secondary market."However, the dominance of financial institutions should be reduced and more real sectors need to be listed," added the Maoist finance minister.
Contradicting popular belief that he is not serious about the development of capital market, the finance minister paid a visit to the secondary market that is considered a fast-track to capitalism.
On the occasion, acting revenue secretary Krishna Hari Baskota said that a few players have a monopoly of the market. "Despite the huge number of investors, it is only a few people who still have a hold over it," he added.
"The capital market can be a tool for poverty reduction," said Shankar Man Singh, general manager of the government-owned Nepse. "It needs to be expanded to the rural areas," he added.
At a time when two other stock exchanges from private sector are in the pipeline, the government should be serious about developing Nepse. "Nepse is an example of how a government-run institution can fare better, if run in a transparent manner," said Dr Narayan Prasad Poudel, Nepse chairman.
Established in 1993, Nepse has seen a sea change in its technology and development over the last one-and-a-half decades but still the number of brokers is small and the delay in transfer of share certificates is one of the hurdles pulling back market development.
Monday, March 16, 2009
Government collects record revenue
The government has collected Rs 84.4 billion revenue in the first eight months of this fiscal year. During the same period last fiscal year, the revenue collection was at Rs 60.61 billion, according to the finance ministry.
The increased amount Rs 23.43 billion that is 38.6 per cent growth is the record increasement in the revenue collection in the history, said Krishna Hari Baskota, acting revenue secretary at the finance ministry. In the total collection, Voluntary Disclosure of Income Sources (VDIS) contributed Rs 470 million in the total revenue collection," he added.
The government has been successful in revenue collection, though it has failed to spend on development activities. The government had collected Rs 72.26 billion till the end of the seventh month of this fiscal year 2008-09.
The increased amount Rs 23.43 billion that is 38.6 per cent growth is the record increasement in the revenue collection in the history, said Krishna Hari Baskota, acting revenue secretary at the finance ministry. In the total collection, Voluntary Disclosure of Income Sources (VDIS) contributed Rs 470 million in the total revenue collection," he added.
The government has been successful in revenue collection, though it has failed to spend on development activities. The government had collected Rs 72.26 billion till the end of the seventh month of this fiscal year 2008-09.
Sunday, March 15, 2009
Nepali industries crisis-hit, declares business community
The industrialists today declared industrial crisis, blaming the government apathy for the same.
“The industries are vulnerable due to long hours of power outage, labour disputes and insecurity,” Pradeep Jung Pandey, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said.
“As responsible citizens, the business fraternity cannot burn tyres and call bandh — the only language the government understands,” the vice-president of umbrella organisation of Nepali private sector said, adding, “We have been compelled to declare crisis as the situation is grim and the government is not serious.”
The district chambers and commodity associations under FNCCI, Nepal Chambers of Commerce (NCC) and Confederation of Nepalese Industries (CNI) met at the FNCCI headquarters in Teku here late in the evening for emergency meeting and declared Industrial Crisis themselves.
“We have decided not to pay demand charge for electricity as our industries have been reeling under 16-hour daily load-shedding,” he said. The industry captains are also planning to submit a memorandum to the prime minister urging him to address their problems immediately.
“The government is concerned only about revenue collection and has been neglecting our problems,” alleged Surendra Bir Malakar, president of NCC. Though the Maoists-led government claims of national industrial capatilism, the domestic industries are the worst-hit due to labour disputes with the trade unions related to the ruling coalition, and the power crisis.
Earlier, the government had declared Energy Crisis, but did nothing concrete for the interrupted power supply for the industrialists. “The power crisis won’t be solved for another five years,” said Pandey. During the decade-long conflict also the industrialists were not so hopeless.
“The government must immediately address power crisis, stop strikes in the industries and come up with a rescue package for the industries,” Malakar urged.
During the mid-term budget review, Finance Minister Dr Baburam Bhattarai had accepted that the desired growth target could not be achieved. The adverse conditions in the country has reduced the growth as the Central Bureau of Statistics (CBS) has also reduced the growth forecast to 3.8 per cent from the government’s seven per cent growth target.
The manufacturing sector will have a negative growth of 0.5 per cent, according to the CBS.
“The industries are vulnerable due to long hours of power outage, labour disputes and insecurity,” Pradeep Jung Pandey, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said.
“As responsible citizens, the business fraternity cannot burn tyres and call bandh — the only language the government understands,” the vice-president of umbrella organisation of Nepali private sector said, adding, “We have been compelled to declare crisis as the situation is grim and the government is not serious.”
The district chambers and commodity associations under FNCCI, Nepal Chambers of Commerce (NCC) and Confederation of Nepalese Industries (CNI) met at the FNCCI headquarters in Teku here late in the evening for emergency meeting and declared Industrial Crisis themselves.
“We have decided not to pay demand charge for electricity as our industries have been reeling under 16-hour daily load-shedding,” he said. The industry captains are also planning to submit a memorandum to the prime minister urging him to address their problems immediately.
“The government is concerned only about revenue collection and has been neglecting our problems,” alleged Surendra Bir Malakar, president of NCC. Though the Maoists-led government claims of national industrial capatilism, the domestic industries are the worst-hit due to labour disputes with the trade unions related to the ruling coalition, and the power crisis.
Earlier, the government had declared Energy Crisis, but did nothing concrete for the interrupted power supply for the industrialists. “The power crisis won’t be solved for another five years,” said Pandey. During the decade-long conflict also the industrialists were not so hopeless.
“The government must immediately address power crisis, stop strikes in the industries and come up with a rescue package for the industries,” Malakar urged.
During the mid-term budget review, Finance Minister Dr Baburam Bhattarai had accepted that the desired growth target could not be achieved. The adverse conditions in the country has reduced the growth as the Central Bureau of Statistics (CBS) has also reduced the growth forecast to 3.8 per cent from the government’s seven per cent growth target.
The manufacturing sector will have a negative growth of 0.5 per cent, according to the CBS.
Friday, March 13, 2009
VDIS extended deadline brings in more cash
The Inland Revenue Department (IRD) collected Rs 220 million today — on the last day of the extended deadline of the Voluntary Disclosure of Income Sources (VDIS) scheme.
The Finance Ministry has managed to mop up Rs 1.51 billion, thanks to this scheme, that exceeds its minimum target of Rs 1 billion.
“Our records reveal that around 3,600 people have paid taxes after declaring their assets till today. However, we had compiled a list of 10,000 people,” said Kapil Dev Ghimire, director general, IRD.
The government extended the deadline by a month after the industry captains urged the former to accede to their request.
In the first phase, the government had managed to rake in Rs 1.42 billion. The original deadline had expired on February 11.
But, the extension came in handy for the government if the collections are anything to go by. It collected an additional Rs 467.8 million from 1,600 people.
Interestingly, a bulk of the people, who availed of the revised deadline, is realtors.
Finance Minister Dr Baburam Bhattrai has announced the scheme during his budget speech on September 19, 2008.
As per the VDIS, an individual can declare property that has no specific source of income. The tax payee has to cough up 10 per cent of the total cost of the asset to make it legitimate.
On the last day, a person paid a record Rs 4.7 million.
According to the IRD, only 15 per cent of the sum was collected from outside the Valley. Biratnagar came second to the capital.
Dr Bhattarai made an announcement for all those who did not come under the scheme.
“They have to pay a cumulative tax of 65 per cent, inclusive of penalty,” said the Finance Minister.
“We will prepare the defaulters’ list, which runs up to around 6,400 people, within the next three days. We will send letters to them, urging them to pay up soon. They will be booked if they fail to furnish sources of income and asset,” added Ghimire.
The Finance Ministry has managed to mop up Rs 1.51 billion, thanks to this scheme, that exceeds its minimum target of Rs 1 billion.
“Our records reveal that around 3,600 people have paid taxes after declaring their assets till today. However, we had compiled a list of 10,000 people,” said Kapil Dev Ghimire, director general, IRD.
The government extended the deadline by a month after the industry captains urged the former to accede to their request.
In the first phase, the government had managed to rake in Rs 1.42 billion. The original deadline had expired on February 11.
But, the extension came in handy for the government if the collections are anything to go by. It collected an additional Rs 467.8 million from 1,600 people.
Interestingly, a bulk of the people, who availed of the revised deadline, is realtors.
Finance Minister Dr Baburam Bhattrai has announced the scheme during his budget speech on September 19, 2008.
As per the VDIS, an individual can declare property that has no specific source of income. The tax payee has to cough up 10 per cent of the total cost of the asset to make it legitimate.
On the last day, a person paid a record Rs 4.7 million.
According to the IRD, only 15 per cent of the sum was collected from outside the Valley. Biratnagar came second to the capital.
Dr Bhattarai made an announcement for all those who did not come under the scheme.
“They have to pay a cumulative tax of 65 per cent, inclusive of penalty,” said the Finance Minister.
“We will prepare the defaulters’ list, which runs up to around 6,400 people, within the next three days. We will send letters to them, urging them to pay up soon. They will be booked if they fail to furnish sources of income and asset,” added Ghimire.
Wednesday, March 11, 2009
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.
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.
Sunday, February 22, 2009
Plea to end VDIS imposition
Entrepreneurs today reiterated their plea to the government not to investigate the source of their income.
At a meeting at the Finance Ministry here, they requested the ministry to create investment-friendly environment by not investigating the source of already invested in industries. The government conceded this request.
The finance ministry said it was positive towards creating investment-friendly environment but also requested them to pay tax on undisclosed income under the Voluntary Disclosure of Income Source (VDIS) scheme.
A team of industry captains, including Federation of Nepalese Chambers of Commerce and Industry president Kush Kumar Joshi, Confederation of Nepalese Industries president Binod Chaudhary and Nepal Chambers of Commerce president Surendra Bir Malakar along with other entrepreneurs held talks with finance secretaries and revenue officials held elaborate talks on the issue. However, they could not reach any decision today. Another meeting will be held on the issue this week again.
Earlier, on February 11 both sides had agreed to form a team to study the promotion of investment and find a win-win situation for both the entrepreneurs and the government. The team was mandated to submit its report within a week.
"We requested the government to help create an investment-friendly environment," NCC president Surendra Bir Malakar said adding that he hoped that the government would take serious note of it.
At the request of the harried entrepreneurs the government had previously extended the deadline for the VDIS scheme by a month to February 11. The new cut-off date is March 13.
Under the earlier deadline, tax collection exceeded the government's expectations and it ended up collecting Rs 1.42 billion. The extension is being viewed as an encouragement for more entrepreneurs to pay their dues.
In his budget for the fiscal year 2008-09, Finance Minister Dr Baburam Bhattarai had announced the VDIS scheme for collecting 10 per cent tax on income that has no source. The government has been repeatedly saying that it needs money to spent on infrastructure but not a single development project has started yet.
IRD collects Rs 12.5 million more
KATHMANDU: Though the Inland Revenue Department (IRD) collected Rs 1.42 billion (the declaration stood at Rs 14 billion) by the end of first deadline of February 11, after that date it coolected Rs 12.5 million. "After February 11, till Sunday IRD collected Rs 12.5 million," said IRD director general Kapil Deve Ghimire. Some 29 more taxpayers came under VDIS, he said adding that over 3,500 people across the country also paid house rent tax of Rs 100 million till date. A taxpayer had then paid Rs 39.4 million on the last day on February 11, registering it as the single largest amount by an individual under the scheme. Altogether, four persons paid more than Rs 10 million tax each. The number of tax payers under VDIS scheme is increasing. On the previous February 11 deadline, over 1,100 people paid Rs 650 million.
At a meeting at the Finance Ministry here, they requested the ministry to create investment-friendly environment by not investigating the source of already invested in industries. The government conceded this request.
The finance ministry said it was positive towards creating investment-friendly environment but also requested them to pay tax on undisclosed income under the Voluntary Disclosure of Income Source (VDIS) scheme.
A team of industry captains, including Federation of Nepalese Chambers of Commerce and Industry president Kush Kumar Joshi, Confederation of Nepalese Industries president Binod Chaudhary and Nepal Chambers of Commerce president Surendra Bir Malakar along with other entrepreneurs held talks with finance secretaries and revenue officials held elaborate talks on the issue. However, they could not reach any decision today. Another meeting will be held on the issue this week again.
Earlier, on February 11 both sides had agreed to form a team to study the promotion of investment and find a win-win situation for both the entrepreneurs and the government. The team was mandated to submit its report within a week.
"We requested the government to help create an investment-friendly environment," NCC president Surendra Bir Malakar said adding that he hoped that the government would take serious note of it.
At the request of the harried entrepreneurs the government had previously extended the deadline for the VDIS scheme by a month to February 11. The new cut-off date is March 13.
Under the earlier deadline, tax collection exceeded the government's expectations and it ended up collecting Rs 1.42 billion. The extension is being viewed as an encouragement for more entrepreneurs to pay their dues.
In his budget for the fiscal year 2008-09, Finance Minister Dr Baburam Bhattarai had announced the VDIS scheme for collecting 10 per cent tax on income that has no source. The government has been repeatedly saying that it needs money to spent on infrastructure but not a single development project has started yet.
IRD collects Rs 12.5 million more
KATHMANDU: Though the Inland Revenue Department (IRD) collected Rs 1.42 billion (the declaration stood at Rs 14 billion) by the end of first deadline of February 11, after that date it coolected Rs 12.5 million. "After February 11, till Sunday IRD collected Rs 12.5 million," said IRD director general Kapil Deve Ghimire. Some 29 more taxpayers came under VDIS, he said adding that over 3,500 people across the country also paid house rent tax of Rs 100 million till date. A taxpayer had then paid Rs 39.4 million on the last day on February 11, registering it as the single largest amount by an individual under the scheme. Altogether, four persons paid more than Rs 10 million tax each. The number of tax payers under VDIS scheme is increasing. On the previous February 11 deadline, over 1,100 people paid Rs 650 million.
Sunday, February 15, 2009
Revenue collection pole-vaults target
The government has exceeded its revenue collection target for the seventh month of this fiscal year.
"The government collected Rs 72.26 billion till the end of the seventh month of this fiscal year," said acting revenue secretary Krishnahari Baskota. The target was to collect Rs 69.25 billion till the end of seventh month. "But collection has exceeded by 104.35 per cent of the target," he said.
Finance Minister Dr Baburam Bhattarai was earlier blamed for his ambitious revenue target in the budget for the fiscal year 2008-09, but till the seventh month of this fiscal year 2008-09 the collection has seen encouraging growth.
Though the government has not been able to spend on development activities, revenue collection has witnessed 32.5 per cent growth in comparison to the same period the last fiscal year. By the end of seventh month the last fiscal year, revenue collection was at Rs 54.52 billion. "Its a 32.5 per cent growth in comparison to the same period last fiscal year," the acting revenue secretary said.
Collection shot up by Rs 12.78 billion in a single month in the seventh month from Rs 59.48 billion in the sixth month of this fiscal year. Baskota also contributed the growth in revenue collection to the Voluntary Disclosure of Income Source (VDIS) that saw a whopping Rs 1.42 billion roll in by the end of a 'deadline' that has been extended one more month after repeated request from entrepreneurs. The new deadline for VDIS that is expected to collect another over Rs 1 billion is March 13.
"The government collected Rs 72.26 billion till the end of the seventh month of this fiscal year," said acting revenue secretary Krishnahari Baskota. The target was to collect Rs 69.25 billion till the end of seventh month. "But collection has exceeded by 104.35 per cent of the target," he said.
Finance Minister Dr Baburam Bhattarai was earlier blamed for his ambitious revenue target in the budget for the fiscal year 2008-09, but till the seventh month of this fiscal year 2008-09 the collection has seen encouraging growth.
Though the government has not been able to spend on development activities, revenue collection has witnessed 32.5 per cent growth in comparison to the same period the last fiscal year. By the end of seventh month the last fiscal year, revenue collection was at Rs 54.52 billion. "Its a 32.5 per cent growth in comparison to the same period last fiscal year," the acting revenue secretary said.
Collection shot up by Rs 12.78 billion in a single month in the seventh month from Rs 59.48 billion in the sixth month of this fiscal year. Baskota also contributed the growth in revenue collection to the Voluntary Disclosure of Income Source (VDIS) that saw a whopping Rs 1.42 billion roll in by the end of a 'deadline' that has been extended one more month after repeated request from entrepreneurs. The new deadline for VDIS that is expected to collect another over Rs 1 billion is March 13.
Thursday, February 5, 2009
Finance Minister sticks to VDIS deadline
Finance Minister Dr Baburam Bhattarai today ruled out extension of deadline for the Voluntary Disclosure of Income Scheme (VDIS).
While interacting to mediapersons — ahead of his weeklong visit to Japan — at the Tribhuwan International Airport, he said that there would not be any relaxation of the VDIS deadline, which expires on February 11.
As per the Finance Ministry’s scheme, those who do not have any specific source of income can make their earnings legitimate by paying a nominal 10 per cent tax.
The ministry has urged professionals — like doctors, engineers and lawyers — to follow the VDIS norms. Politicians, too, have been asked to follow suit. The Maoist-led government declared that it would not seek the source of income if the tax was paid within the February-11 cutoff date.
The business community has been asking for an extension of the deadline.
Yesterday, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) submitted a memorandum to Prime Minister Puspa Kamal Dahal 'Prachanda', urging the government to stretch the timeframe by at least another two months.
"The PM was positive," said one of the entrepreneurs, who were part of the delegation.
But, Dr Bhattarai is clearly in no mood to relent. “We will take stern action against those who fail to comply with the deadline,” he said.
His trip to the Asian powerhouse aims to encourage Japanese private investment towards local hydroelectric projects.
While interacting to mediapersons — ahead of his weeklong visit to Japan — at the Tribhuwan International Airport, he said that there would not be any relaxation of the VDIS deadline, which expires on February 11.
As per the Finance Ministry’s scheme, those who do not have any specific source of income can make their earnings legitimate by paying a nominal 10 per cent tax.
The ministry has urged professionals — like doctors, engineers and lawyers — to follow the VDIS norms. Politicians, too, have been asked to follow suit. The Maoist-led government declared that it would not seek the source of income if the tax was paid within the February-11 cutoff date.
The business community has been asking for an extension of the deadline.
Yesterday, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) submitted a memorandum to Prime Minister Puspa Kamal Dahal 'Prachanda', urging the government to stretch the timeframe by at least another two months.
"The PM was positive," said one of the entrepreneurs, who were part of the delegation.
But, Dr Bhattarai is clearly in no mood to relent. “We will take stern action against those who fail to comply with the deadline,” he said.
His trip to the Asian powerhouse aims to encourage Japanese private investment towards local hydroelectric projects.
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