Kathmandu. According to the private sector, the ban on cash transactions from January 1 has created problems in business activities after the limit of cash transaction was set at Rs 500,000. At a programme organized on the occasion of International Customs Day, umbrella organizations of the private sector demanded that the limit on cash transactions should be increased.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal and President of Nepal Chamber of Commerce Kamalesh Kumar Agrawal stressed on the need of amending the provision that the transaction of more than half a million rupees should be done through the banking system.

FNCCI President Dhakal said that the provision of allowing cash transactions up to up to five lakh rupees has created problems for the entrepreneurs when banking access and its use has not reached all parts of the country. He said that there might have been pressure from the international sector on the government and central bank as Nepal is in the ‘grey list’ on the issue of money laundering.

Dhakal was of the view that it was the right time to amend the economic policy to facilitate investment and promote the private sector. He was of the view that the government should move ahead with the policy of promoting domestic industries and entrepreneurship rather than giving priority only to customs revenue. He also mentioned that the hotel and tourism sector has not been able to get facilities from the state like other industries.

Nepal Chamber of Commerce president Kamalesh Kumar Agrawal said customs administration was an important area for national economy and trade facilitation. He blamed the existing Customs Act for penalties and penalties as harsh and impractical.

Pointing out the need to maintain multiple rates in the Value Added Tax (VAT), Agrawal said that customs facilitation should be made on the goods coming to Nepal to develop Nepal as a wedding destination. He also said that the arrangement of transaction of more than five lakh rupees only through the banking system has created problems for the entrepreneurs.

President of Customs Agents’ Federation, Prachin Kumar Thaiba, stressed on developing a transparent and technology-friendly customs system for controlling illegal trade, economic development, revenue collection and facilitating foreign trade.