'Stop relying on Reference Book to fix customs duties'

By A Staff Reporter,Kathmandu, Jan. 26: Nepal Foreign Trade Association (NFTA) has urged the government to cease reliance on the Reference Book to determine the customs duties, and address under- and over-invoicing. 

"Still, there is a need for the simplification of the valuation practices to curb under-invoicing and over-invoicing. Likewise, better infrastructure, including warehousing, laboratories, and quarantine facilities should be managed and upgraded," said President of the Association Shiva Agrawal said at an interaction organised by the NFTA on Saturday in Kathmandu. 

He urged the government to create clear and transparent policies to eliminate retrospective taxation and reduce indirect taxes. 

According to him, enhanced coordination among agencies such as police, tax administration and customs is fundamental in facilitating the private sector entrepreneurs. 

Meanwhile, Agrawal also appreciated the continuous efforts from the customs authorities in implementing measures to ensure efficiency and security and modernise customs practices in line with international standards. 

"We must work to create better collaboration between customs authorities and the private sector to discourage grey markets. Incentives for customs officers who work long hours and deliver results should also be offered," said Agrawal. 

He called for facilitating e-commerce through platforms like PayPal and eBay to enhance Nepali exports. "Implementation of export-friendly policies such as rebates, tax concessions, and subsidies for export-oriented businesses, and reduction in logistics costs is paramount in improving competitiveness in the global market," he said. 

Similarly, Gaurav Sharda, Vice-President of the Association, suggested removing the tools that cause harassment to the importers and exporters. 

According to him, the private sector wants timely cash incentives, export credit insurance, and reduced logistics costs while interest subsidies, hassle-free tax policies, and forex support for exporters are also equally important. 

In response, Revenue Secretary, Dr. Ram Prasad Ghimire, said that the Ministry of Finance was positive about disbursing the cash-incentive on time. "If the government announces incentive plans, it should be implemented. It promotes the industrial development in the country," he said. 

Dr. Ghimire also stated that the incentives on exports should be given to the producers not the traders. 

According to him, the government can review the demands of the traders to transit to the transaction value in determining the customs duties.