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Upcoming budget will have no policy changes: FM
KATHMANDU, DEC 26 - Finance Minister Dr Prakash Chandra Lohani has clarified that upcoming budget through ordinance will have no major policy changes, except minor revenue and expenditure adjustments.
Speaking at prior budget interaction organised by Nepal Chamber of Commerce (NCC) here today, Minister Lohani said that since the overall economic performance is better than expected, there is no need to bring substantial changes.
Highlighting major economic achievements made during the running fiscal year, he said that revenue mobilisation growth rate has gone up to around 15 per cent against budgetary target of 10.7 per cent.
He also reiterated that despite growing pressure in the fiscal position, the regular expenditure would be kept within the budgetary limit at any cost and informed the gathering that the development expenditure has been increased by around 15 per cent.
"Despite the growth in development expenditure, it is not enough to achieve the long-term goal of development and the government is taking serious efforts to expedite the development expenditure that ultimately pushes up the GDP of the country," he added.
Dr Lonahi also underlined that current challenges in development of the country is maximum utilisation of available resources and added that the government would soon offer various infrastructure projects for private sector under Build, Own, Operate and Transfer (BOOT) scheme.
He also assured that the government would pay due attention on various business-related concerns raised on the occasion.
Speaking on the occasion, Rajesh Kazi Shrestha, NCC President stressed on the need of conducive business environment for the promotion of private sector.
Highlighting various activities of the NCC in the promotion of business environment, Shrestha said that business community is ready to extend necessary co-operation for the effective enforcement of the VAT billing.
Shrestha also welcomed the recent government initiative to offer crucial infrastructure projects to the private sector under the BOOT scheme and said that the private sector has been encouraged by the offer.
He, however, urged the government to be more liberal in providing tax benefits to lure private investment.
Kiran Prakash Shaka, President of Garment Association Nepal demanded with the government to provide tax exempt the garment exports to check the eroding competitiveness Nepali exports in the international market.
"As being the major exportable sector, we think that we should be awarded some especial privileges through the upcoming economic ordinance," he said
Him Bahadur Rawal, Chairman of the Revenue Committee at NCC presented a wide range of tax related problems and urged the government to increase the existing income tax exemption limit. He also said that due to the ineffective procedures, the current rent tax has to be born by the renters themselves.
He also said that instead of current dasturi system, the government should arrange special allowances for the customs officials for their odd hour working. Tej Ratna Shakya, President of Gold-Silver Dealers Association and Upendra Rizal, President of Nepal Feed Association also spoke on the occasion.Posted on: 2003-12-27 04:20
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