The Confederation of Nepalese Industries (CNI) has been working in the areas of creating industrial environment, investment promotion, employment generation and other sectors as an umbrella organization of production and service oriented industries. The CNI has been conducting its activities to support the implementation of the policies taken by the Government of Nepal. The CNI has been working as an important partner for the economic and social development of the country since its inception.

The CNI has been giving clear suggestions to various ministries and regulatory bodies on policy issues including the annual budget, policy and program, various plans being prepared by the National Planning Commission. As a think tank, the CNI has been giving policy suggestions to the government keeping the overall economy at the center. The confederation is not just giving suggestions. It has also been taking constructive initiatives for the successful implementation of the policies brought by the government.

A number of commissions and high-level committees were formed to make recommendations on issues related to the improvement of the economy and public governance. The implementation of the recommendations of these commissions and committees can be a matter of study. However, we believe that the government has given a lot of importance to the implementation of the report of the High Level Economic Reform Advisory Commission and its recommendations.

For the first time, the private sector was made a member of the High Level Economic Reform Advisory Commission and one of its members was Rajesh Kumar Agrawal from the Confederation of Nepalese Industries (CNI), as the president of CNI. We gave the suggestions in a realistic way.

We had started the public-private dialogue titled ‘Roadmap for Economic Transformation’ with the intention that necessary initiatives should be taken to implement the recommendations given by the commission even though the private sector is also involved. As the second edition of the same initiative, we have organized this public-private dialogue focusing on the suggestions given by the Economic Reforms Implementation Action Plan, 2082 formed to implement the suggestions given by the Commission.

The government celebrated National Tax Day on November 1. Today’s discussion has been organized focusing only on the suggestions given by the Economic Reform Implementation Action Plan, 2082 for the reform of the overall tax system, based on the National Tax Day.

Banks have money to invest. The interest rate is in single digits. The overall market demand has not increased. Industries are operating at low capacity even as demand has not increased. Inflation is at a low point. Staying idle is not a good sign for the economy.

I would like to make it clear again that the recommendations given by the Commission should be implemented. The country’s economy is in a challenging situation. There is money to invest in banks. The interest rate is in single digits. The overall market demand has not increased. Industries are operating at low capacity even as demand has not increased. Inflation is at a low point. Staying idle is not a good sign for the economy. It has also had an impact on the government’s revenue.

Unless investment can be increased, it will be difficult to improve the mentioned issues. In our case, the tax system needs to be reformed to attract investment. The importance given by the Commission’s suggestions and action plan has also proved this. Therefore, there is a need to reform the tax system as soon as possible.

Policy stability is very important for investment expansion and industrial environment. Not only domestic investors, but foreign investors also invest only by looking at the stability of tax policies. I would like to request you to pay serious attention to the tax policy as it is also the basis of investment of investors.

As a member of the Confederation of Nepalese Industries (CNI), I would like to express my commitment to continue such initiatives for the successful implementation of the Commission’s recommendations. We want the economy to be transformed along with the recovery. For this, I assure that the role and duties to be performed by the Confederation will be fulfilled with full responsibility. I would also like to express my commitment to organize other sector-focused public-private dialogues like today based on the recommendations of the commission.

Chairman of the Confederation of Nepalese Industries (CNI) Birendra Raj Pandey delivered his speech at a programme organized by the Confederation of Nepalese Industries (CNI) on Reforms in Revenue System.