Budget Tax Amendments Create Uncertainty Among Businesses: Chairman Dhakal

Chairman of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, expressed concerns that tax amendments in the recent budget have created confusion among business owners. Speaking at an event held at the FNCCI on Tuesday, Chairman Dhakal highlighted several issues:

1. Advance Income Tax on Agriculture: The maximum 10% advance income tax on agricultural and agro-based products, with no provisions for carry-forward or refunds, has raised concerns among entrepreneurs.

2. Increased Customs Duties: Additional customs duties on imported goods and raw materials, value-added tax on pharmaceutical products, and environmental taxes on plastic goods have increased production costs, affecting the competitiveness of domestic industries.

3. Excise Duty on Iron Rods: Changes in excise duty on iron rods have caused uncertainty among industrialists for several years.

4. Policy Instability: The inclusion of retroactive laws in the budget has led to a lack of policy stability, sending a negative message to the market. While these laws might boost short-term revenue collection, they have long-term detrimental effects on investments.

5. Revenue Administration: Despite the budget's provision to make revenue-related services faceless and automated, full automation has not yet been achieved.

6. Startup Policy: On a positive note, the recently approved startup policy, initially drafted by the FNCCI two years ago, is expected to be a significant milestone for the expansion of startups.

Chairman Dhakal emphasized the need for policy stability to create a conducive investment environment and called on the government to address these issues to ensure the growth and stability of the business sector.