NFTA concerned about unauthorised imports

By A Staff Reporter,Kathmandu, Apr.30: Nepal Foreign Trade Association (NFTA) has informed Finance Minister Dr. Prakash Sharan Mahat that due to the increase in unauthorised imports caused by high customs rates in a country that has vast open borders, businesspeople abiding by the laws and rules are in trouble. 

A delegation of NFTA led by its President Vinod Kumar Sethia called on the Finance Minister the other day to request him to find solutions to the existing problems the businesses and traders have been facing due to the illegal imports of goods. 

“One of the best solutions to this problem is to reduce the customs rates,” said Sethia. 

He also drew the attention of the Finance Minister to the fact that all the citizens living in the Terai region are making the Indian market across the border a shopping destination to take advantage of the price difference caused by the high customs rate.

Citing the availability of the goods which were banned to import in the Nepali market, Sethia said that it should also be considered whether the ban promoted unauthorised trade.

According to him, a favourable environment should be created for commercial agriculture and contactless and paperless service delivery should be promoted for good governance. 

Likewise, he emphasised on reducing 

the cost of doing business in Nepal. “There is a need to establish a Permanent Tax Clearance Commission to settle disputes related to income tax, value added tax, excise duty and customs duty,” he said.

Sethia pointed out the need to expand the scope of taxes, formulate an act related to lending and amend the old laws and regulations in a timely manner, and said that the government should facilitate the business and make the regulation effective. 

The NFTA has handed over a memorandum including suggestions to improve doing business environment in the country. 

Ratanlal Kedia, vice-president of the association, said that in order to facilitate the rice industry in the country, different tariffs should be imposed on the import of paddy and rice.

In response, Finance Minister Dr. Mahat mentioned that he is serious about improving the economy and said that many complaints of businessmen will be addressed through the budget of the next fiscal year.