Kathmandu. KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to include a clear policy on protection, promotion and morale enhancement of the private sector in the manifesto to be prepared by the political parties in view of the upcoming elections.

Speaking at a press meet organized by FNCCI here today, FNCCI President Chandra Prasad Dhakal said that overall economic recovery of the country was becoming challenging as the private sector was neglected. According to him, the private sector, which contributes 81 per cent to the GDP and generates 86 per cent of the jobs, is at risk due to the weakness of the country’s economy.

“The morale of the private sector has reached a historic low. It is a serious sign that the bank is not able to invest despite having liquidity. If this situation continues, employment and revenue may shrink further and the country may be heading towards failure. ”

According to the FNCCI, the private sector suffered direct physical damage of Rs 36 billion and overall loss of Rs 80 billion during the agitation on September 7 and 24. The FNCCI has said that the investors have been discouraged due to insecurity and uncertainty following the agitation.

Private Sector Protection Plan Proposal

The FNCCI has proposed ‘Private Sector Protection and Promotion Plan’ to restore the security and confidence of the private sector. The committee has suggested declaring industry and business establishments as zones of peace, establishing a special mechanism for industrial security and providing one-door service for the reconstruction of damaged structures.

The FNJ has also urged the political parties to clearly mention in the declaration the right to property guaranteed by the constitution, guarantee of unhindered profession and business. The FNCCI has concluded that the socialism-oriented economy and three-pillar policy have failed to attract expected employment and investment.

{{TAG_OPEN_strong_31} Law Reform and Digital Services Required

The FNCCI has demanded that more than a dozen laws, regulations and working procedures discourage entrepreneurship be scrapped or amended. The federation has also suggested that the entire process from registration to exit of a business should be made fully digital through the ‘Nagarik App’ and the provision of annual business renewal should be scrapped.

Emphasis on agriculture, tourism, energy and infrastructure

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The federation has stressed on the need to promote agricultural products and export through organic hill programme, farmers’ identity cards, digital distribution of grants and ‘From Farm to Gulf’ programme, giving priority to agriculture and tourism.

Likewise, projects like hill station, cable car, resort and teaching hospital should be exempted from tax and infrastructure facilities and Nepal should be developed as a wedding and conference tourism destination.

In order to attract private sector investment towards the energy and infrastructure projects, additional tax exemption, involving the private sector in land acquisition and construction of transmission lines have been demanded. The FNCCI has also demanded clear modalities for the effective operation of Nijgadh International Airport, Gautam Buddha Airport and Pokhara Airport.

The FNCCI has proposed to bring an umbrella act for multi-rate value-added tax, reduction of tax on manufacturing industries, elimination of double taxation and non-tax revenue to make the tax system simple, stable and competitive. It has also suggested that companies reinvesting should be given up to 75 percent exemption in income tax.

“Employment can be created, revenue expansion and a prosperous Nepal will be possible only when the private sector is safe, respected and enthusiastic,” the FNCCI concluded. Therefore, the political parties should not only come up with a private sector-friendly manifesto but also an implementable policy. ”