Industrialists Propose Tax and Customs Reforms ➤

Industrialists Propose Tax and Customs Reforms

Nepalgunj Chamber of Commerce and Industry Hosts Dialogue on Taxation Concerns

Banke industrialists convened to address taxation concerns during a session with the Revenue Advisory Committee. The discussion, organized by the Nepalgunj Chamber of Commerce and Industry, highlighted the need for revisions in customs and tax rates to foster a conducive business environment.

During the session, business leaders expressed dissatisfaction with the current single-rate value-added tax (VAT) system, deeming it impractical for various goods. Many proposed either eliminating customs duty and VAT on consumables or reducing rates compared to other goods.

Abdul Wahid Mansuri, a prominent figure in the business community, emphasized the government’s obligation to respect tax-paying businessmen. He advocated for tax and customs exemptions on essential food items, stressing the need for supportive policies.

Mansuri also criticized the practice of subjecting cleared goods to multiple inspections, causing inconvenience to traders. He questioned the rationale behind exempting customs-related employees from penalties for rule violations.

Representatives from diverse sectors, including small and large enterprises, retailers, wholesalers, construction professionals, and service providers, voiced their sector-specific challenges. They unanimously called for adjustments in tax and customs rates to alleviate burdens.

A prevalent concern raised was the need for stringent customs measures to curb illegal imports and smuggling, particularly across open borders. Nandlal Vaishya, a former chamber president, underscored the symbiotic relationship between government strength and the resilience of industrialists and businessmen.

Vaishya urged modernizing the outdated customs valuation system, suggesting it was a relic of the past. Similarly, industrialist Kanhaiyalal Vaidya emphasized the abundance of investment opportunities in Nepal but stressed the necessity of a supportive business environment.

The dialogue concluded with a consensus on the imperative nature of tax and customs reforms to bolster Nepal’s business landscape. Industrialists and businessmen reiterated their commitment to collaborative efforts with the government to foster economic growth and prosperity.