Kathmandu. The Finance Committee under the House of Representatives has drawn the government’s attention to adopting a revenue policy that does not put domestic production and domestic industries in trouble. The committee has received a petition from some industrialists and businessmen that they are in trouble due to the government’s tax policy, and today’s meeting has decided to draw the government’s attention to the promotion of domestic industries by taking appropriate decisions on this issue, informed Chairman Santosh Chalise.
The government has said that the upcoming fiscal year 2082 is impractical, and gold and silver traders, Ayurvedic medicine traders and iron and steel industry players have called for cooperation with the Finance Committee. Gold and silver traders are protesting the imposition of a two percent luxury tax and a 13 percent value-added tax (VAT) on gold, silver, diamonds and other items.
Similarly, Ayurvedic medicine traders have submitted a petition to the Finance Committee demanding the repeal of the 13 percent VAT imposed on Ayurvedic medicines, which are considered essential medicines. Iron rod and rod businessmen have also approached the Finance Committee to stop the imposition of a 10 percent customs duty on the import of raw materials used to make gabion wires called ‘wire rods’.
Businessmen from all these three sectors are drawing the government’s attention through the committee, saying that if the tax rates imposed by the government through the budget for the upcoming fiscal year 2082-83 are implemented, domestic industries will face problems and a large number of jobs will be lost.
After discussions with the businessmen, today’s meeting of the committee drew the government’s attention to adopting tax policies that promote domestic industries, said Chairman Chalise. ‘The Finance Bill, 2082 is currently under consideration in Parliament. The committee has drawn the government’s attention to this as the tax rates can be amended before they are passed by Parliament, he said.
In today’s meeting of the Finance Committee, most of the lawmakers were of the opinion that the government should reconsider the tax rates as they have been introduced in a way that would cause problems for domestic products.
The issues raised in the committee included higher taxes on consumer goods than on imported raw materials, the government imposing VAT even on essential goods, and the inability of Nepalese products to compete with Indian products due to provisions related to SAFTA. Similarly, the committee members were of the opinion that the committee should draw the government’s attention to this issue as the Economic Act can be amended before it is passed by the parliament.
In the meeting, MPs Ganga Karki, Purna Bahadur Tamang, Julikumari Mahato, Gyan Bahadur Shahi, Narayan Prasad Acharya, Narayani Sharma, Barshaman Pun, Dr. Prakash Sharan Mahat and others expressed the view that tax rates should be fixed in a way that does not cause problems for domestic production.
They said that if some provisions in the Economic Bill under consideration in the parliament are seen to cause problems for domestic production and businessmen, then it should be reconsidered. There were differences of opinion among the MPs on whether a discussion in the committee on the bill under consideration in the parliament is necessary and whether the committee can give instructions. Some members were of the opinion that since the Finance Act could be amended, suggestions could be sent from the committee.
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