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 request from some industrialists and businessmen that they are in trouble due to the government’s tax policy. Chairman Santosh Chalise informed that today’s meeting decided to draw the government’s attention to the promotion of domestic industries by taking an appropriate decision on this issue.
Gold and silver traders, Ayurvedic medicine traders, and iron and steel industry players have called for cooperation from the Finance Committee, saying that the Finance Act 2082 has put entrepreneurs in trouble.
A luxury tax of 2 percent on gold, silver, diamonds and other goods and a 13 percent tax on Gold and silver traders are protesting against the imposition of Value Added Tax (VAT). 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.
Steel rod and rod traders have also approached the Finance Committee to stop the imposition of 10 percent customs duty on the import of raw materials used to make gabion wire called ‘wire rod’. Traders from all three sectors are drawing the government’s attention through the committee, saying that if the tax rates adopted by the government through the budget for the upcoming fiscal year 2082/83 are implemented, domestic industries will be in trouble and a large number of jobs will be lost.
After discussions with 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 tax rates can be amended before it is passed by Parliament,” he said.
Most of the lawmakers in today’s meeting of the Finance Committee 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 production. Issues such as 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 SAFTA-related provisions were raised in the committee.
Similarly, the committee members felt that the committee should draw the government’s attention to this issue as the Economic Act could be amended before it is passed by 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 Parliament were seen to cause problems for domestic production and businessmen, they should be reconsidered.
There were differences of opinion among MPs on whether a discussion in the committee on the bill under consideration in Parliament was necessary or not, and whether the committee could give instructions or not.
Some members were of the opinion that since the Economic Act can be amended, suggestions can be sent from the committee. .
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