Govt. instructed to formulate revenue policy to promote internal production

Kathmandu, June 25: The Finance Committee under the House of Representatives (HoR) has drawn the government's attention to adopt the revenue policy towards promoting internal production and domestic industries.     

Committee President Santosh Chalise informed that its meeting today took the decision to draw the government's attention to lay emphasis on promoting domestic industries. The Lower House Committee meeting drew the government's attention to that end, acting on the applications by some entrepreneurs and businesspersons to the Committee stating government's tax policy has troubled their business.     

The business fraternity, including gold and silver entrepreneurs, Ayurvedic drugs manufacturers, and iron and rod producers sought cooperation from the Finance Committee noting the budget for the upcoming fiscal year impractical.     

The gold and silver entrepreneurs are protesting against the two percent luxury tax and 13 percent value-added tax (VAT) imposed on items such as gold, silver, and diamonds.     

Likewise, Ayurvedic medicine entrepreneurs are demanding the repeal of 13 percent VAT imposed on Ayurvedic medicines, which are considered essential medicinal items.     

Iron rod and bamboo stick entrepreneurs have also approached the Finance Committee to halt the 10 percent customs duty imposed on raw materials used to make 'wire rods.'     

Entrepreneurs from all three sectors have expressed their concerns before the government through the Committee, warning that domestic industries will face problems and number of jobs will be lost if the tax rates decided by the government in the upcoming fiscal year 2082/83 budget are implemented,     

After discussions with the entrepreneurs, the Committee's meeting today highlighted the need for the government to adopt tax policies that promote domestic industries.     

The Economic Bill, 2082 is currently under consideration in the Federal Parliament, awaiting parliamentary approval.(RSS)