Kathmandu. President of Nepal Chamber of Commerce Kamlesh Agrawal has said that the government should be able to revive economic activities through the budget for the upcoming fiscal year 2082/83 BS.
Stating that the problem of the economy now is the contraction of economic activities, he said that the upcoming budget should come in a way to make economic activities dynamic. According to him, the private sector has stressed the need for a realistic budget in this year’s budget.
He said that the implementation of the budget would not be effective until the resources are ensured, so the government should bring the budget based on the resources. Stating that it was necessary for the government to take special care of resources while bringing the budget, Agrawal said that the government should not bring a big budget in case of economic contraction.
Chamber President Agrawal said, “When the economy is shrinking, the sources of revenue are less. The government’s second largest source is foreign aid. Due to the geopolitic situation that has now emerged in the world, even such assistance can lead to contraction. Therefore, the government should bring the budget by making a real projection of the resources. The government should not take internal loans as much as possible for current expenses. Because if internal debt is taken in such a way, it will have a long-term impact. I had to pay interest every year. The government should use internal loans to build infrastructure. Don’t take to other currents. ’
According to him, the government should ensure funds to the schemes by giving priority accordingly by ascertaining the source of the budget. So far, making the budget ambitious and spending accordingly has also affected the country’s treasury.
In some projects, there is no expenditure, in others the money is not available. He said that government officials should be able to accurately estimate the source. In the past, the capital budget was allocated but could not be spent.
In the upcoming budget, the government should also make a plan so that it can increase capital expenditure. Tax rates have also shrunk as economic activity is shrinking. The government has increased customs rates in the past at a time when economic activity has shrunk. As a result, economic activities have been affected, said Agrawal.
According to him, 65 percent of Nepal’s trade is with India.
There is a huge gap between the rate of goods available in the Indian market and in Nepal. Due to high tax rates, the Indian market seems to be moving, while the Market of Nepal is slow. An unofficial study found that more than 500 billion dollars were smuggled from India.
As the tax rate is high, the chances of theft are more likely to increase. It cannot be controlled because of its open border. Therefore, the tax rates should be increased to a maximum of 25 percent. At present, the value-added tax is at a single rate. The rate of tax on essential and luxury goods is not so contemporary.
According to Agarwal, gst is low on many essential commodities in the Indian market. There is a lot in luxury goods. There should be a multi-rate value-added tax. In order to expand economic activity, transaction value is not recognized in Nepal to facilitate imports. Transaction value should be recognized.
The government should not fix the transaction price of businessmen. The income tax rates are high. Personal income tax is 39 percent. It should be reduced to 30 per cent, Agarwal said. Agarwal said that the government has been advised to remove such taxes, adding that the businessmen have been facing a lot of problems due to the retrospective tax in the past.
According to him, the Customs Department and revenue departments are not playing a coordinating role at present. There needs to be coordination among these agencies.
Arrangements should be made to bring goods from customs to their warehouses freely. As the demand for the manufacturing sector is very low, it is necessary to address the budget for setting up new industries and small medium industries for this purpose.
He said that the demarcation should be removed as there is a lot of problem now. According to Agrawal, the government should bring a special package in the budget to promote the manufacturing sector. If the government is unable to build an industrial sector, it should provide cheap land to the private sector to build it.
Nepal’s private sector can be made competitive only if the government can do so. The budget should be brought to open the way for income generation by utilizing Nepal’s natural resources. Cement has been exported to India by traders. There was a problem due to obstruction in the middle. It should be streamlined and brought in the budget to utilize our natural resources.
According to Agrawal, it is necessary to manage the stones, pebbles and sand, which are considered as indigenous natural resources. According to him, these items were exported well in the past. In the context of the environment, the path of export of such goods should be opened in the long run by making a policy after studying it properly.
A country with a large economy like India is a neighbor of Nepal and it should be known to use it.
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