NCC criticizes financial ordinance

January 19, 2004
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Nepal Chamber of Commerce (NCC) flayed the financial ordinance unveiled by the government on January 15 saying that it has failed to incorporate the recommendation of private sectors on VAT, income tax and excise duty.

The press release issued by NCC on Sunday stated that since the government has not made any changes in its economic policy, it is unable to solve the deteriorating economic activities.

Though Minister for Finance Dr Prakash Chandra Lohani had committed to give legality to the expensive metals and diamonds business, it has not been mentioned in the ordinance, the release stated.

NCC has also said that levying tax on the foreign Nepalese employees discourages the foreign employment.

NCC is of the view that the government policy to charge Rs.500 custom service tax on exportable goods discourages the small exporters. Besides the government’s decision to excise custom duty on the export of goods worth up to Rs.5000 is not of much benefit since the amount against US dollar is less than $100.

“The other negative aspect of the ordinance is the failure to curtail the authority of tax officials allocated to them by the Income tax Act,” NCC release stated.

However, NCC appreciated the government’s provision to slash custom duties on mobile sets and CDs, provide special discount on tax imposed on the export of medicine and to fix tax on syringe same as medicine.