NCC urges govt to continue export subsidies

By A Staff Reporter,Kathmandu, Oct. 11: The Nepal Chamber of Commerce (NCC) has urged the government to continue providing export subsidies, warning that halting such support could adversely impact the country’s already struggling export sector.

The delegation of NCC led by its president Kamlesh Kumar Agrawal met Minister for Industry, Commerce and Supplies Anil Kumar Sinha at Singha Durbar on Friday and urged him not to stop the subsidies being given to exports.

The government's latest decision discourages exports at a time when the export potential of domestic products is not yet competitive and production costs are high, according to a press statement issued by the NCC.

The Chamber has also urged Industry Minister Sinha to ease policies to solve existing problems in the economy and boost investor morale.

During the meeting, NCC president Agrawal stressed the need for creating an investment-friendly environment along with ensuring industrial and commercial security in the present situation.

The NCC said, "It is the need of the day for the government to prioritise policy clarity, investment-friendly environment and business security by partnering with the private sector to strengthen the economy."

The chamber has welcomed the policy measures to reschedule loans to industries and businesses seriously affected by the recent Gen Z movement, provide loans at concessional rates, provide 50 per cent customs duty and excise duty exemption on goods imported by entrepreneurs and businessmen during the reconstruction process, and settle insurance claims at a fast pace.

Similarly, the Chamber has welcomed the fact that the long-standing demand that the valuation should be based on the transaction price and that the reference booklet should be removed has now been addressed, and the online valuation system has been launched by the Biratnagar Customs Office.

The chamber has urged the government to end the trend of collecting taxes under pressure due to the lack of clarity in the laws and regulations.

In line with the spirit of the Gen Z movement, the chamber has emphasised providing quick and easy access to credit to young entrepreneurs and giving priority to skill-based businesses. 

Similarly, the chamber has suggested making the business registration, tax and licensing processes transparent, digital-friendly and simple.

Stating that more than 50 per cent of the country has a young workforce, President Agrawal said that the foundation of a self-reliant economy should be laid by bringing the youth into the mainstream of employment.

At a meeting with the chamber officials, Minister Sinha said that they are trying to provide a solution to the economy by creating an investment-friendly environment, including ensuring security in the private sector. 

He said that the concept of an integrated security system put forward by the chamber would be suitable for the security of the industrial and commercial sector.

Meanwhile, the NCC delegation met Finance Minister Rameshore Prasad Khanal on Thursday and urged him to facilitate policies to resolve existing economic problems and boost investor morale. 

The Chamber has suggested that the customs rate should be kept at a maximum of 25 per cent, excise duty should be exempted on goods produced in Nepal, except for the negative list, and that the value-added tax rates should also be kept at a higher rate.