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Cut corporate tax, says CNI
KATHMANDU, JUN 29 -
The Confederation of Nepalese Industries (CNI) has urged the government to reduce the corporate tax to 20 percent from the existing 25 percent for the production, trading and financial sectors.
Submitting a recommendation for the new budget to Finance Minister Surendra Pandey on Tuesday, the CNI also asked to increase the limit on which income tax is imposed to Rs. 250,000 for an individual and Rs. 300,000 for a family.
The CNI has also asked the government to remove the dividend tax to encourage domestic and foreign direct investment.
CNI president Binod Chaudhary said that
the value added tax imposed on the dairy industry should be removed. “We have also demanded a multiple VAT rate,” he added.
Chaudhary has asked the government to involve the private sector in installing high power transmission lines. He demanded that the licenses provided to hydropower developers and mineral explorers should be abolished if they stayed idle during the licensing period.
When some private sector companies are vying to establish an infrastructure bank, the CNI has brought the idea of establishing such a bank with the joint investment of the government and the private sector.
Speaking on Nepal Tourism Year 2011, it has called for a banda-free environment for the success of the tourism year. “The old palaces should be converted into heritage hotels,” it suggested.
In order to promote exports, the CNI has demanded the removal of export services duty and also a softening of the penalty for exporters to 10 percent from the existing 25 percent of the value of the exportable goods.
Regarding the manufacturing industry, it has asked for doubling the single obligatory limit for lending to industries in which more than Rs. 1 billion has been invested.
“The provision requiring government agencies to purchase domestically
produced goods should
be made more effective,” the CNI said.
The CNI has also demanded a difference of 10 percent on the customs duty to be imposed
on imported goods and
raw materials for
Nepali industry to protect domestic industry.
Posted on: 2010-06-30 08:19
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