Kathmandu. The Nepal-India Chamber of Commerce and Industry (Nikkei) has said that the budget presented by the government for the fiscal year 2083/84 is balanced and reform-oriented.

Issuing a press release on Sunday, the association said that the budget has introduced some new programs and reform initiatives and has also given continuity to the important programs of the past. However, the association believes that the budget can be more ambitious to bring about the desired structural changes in the economy.

According to Nikki, the budget has tried to address the issues related to taxes, industry, investment and trade facilitation collected from the private sector. The association concludes that this has sent a positive message to the private sector.

The arrangement of keeping the customs duty on the import of raw materials at least one level less than that of the finished goods, reducing the customs duty on the import of 273 types of raw materials and removing the excise duty on 360 goods are welcome steps.

Likewise, the decision to make it easier for Nepali citizens to invest in foreign countries, to amend the Foreign Investment and Technology Transfer Act to eliminate prior approval from Nepal Rastra Bank for repatriation of investment and simplification of the royalty and technology fee payment process is positive.

The announcement of Nepal’s first compute center in Syuchatar for digital infrastructure development and a special initiative for the promotion of Artificial Intelligence (AI) were also significant.

Programmes such as concessional loan and incentives to women entrepreneurs, commitment to collaborate with the private sector for the operation and promotion of Gautam Buddha and Pokhara International Airport, and preparations for Visit Nepal Year 2085 and Nepal Arogya Year 2027 are expected to contribute to tourism and entrepreneurship development.

Similarly, the arrangement of simplification of customs duty structure from 11 to seven levels, zero tolerance policy against manipulation in share market and participation of Non-Resident Nepalis in the secondary market of securities are also positive steps.

Likewise, the announcement of issuing Diaspora bonds to attract investment of Nepalis living abroad, allowing the private sector to trade electricity in the international market and the implementation of the automated system for the projects approved by the Investment Board would help improve the investment climate.

Nikki said that although the budget is not likely to bring about a drastic change in the economy immediately, it has included various provisions for industry, investment, entrepreneurship, tax reform and participation of the private sector.