Kathmandu. The Federation of Nepalese Export Entrepreneurs (FNCCI) has submitted five recommendations to the government ahead of the budget for the upcoming fiscal year 2083/84. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has demanded to reduce the 15 percent advance income tax on payment of foreign services to 1.5 percent.

According to the FNCCI, the export promotion expenditure has increased due to the high advance income tax on foreign service such as consultation, exhibition stalls, certification and lab test. According to the FNCCI, the provision of foreign exchange facility only after paying income tax in advance has further affected the industrialists.

Likewise, the FNCCI has demanded complete removal of 2.5 percent advance income tax levied on cargo freight forwarder. This is expected to reduce the cost of export and increase the export volume.