Kathmandu. Vice-President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Naresh Lal Shrestha, said that the tax levied on education and health sector should be reconsidered.

He stressed that the government should be clear on this. Speaking at a post-budget discussion program organized by NAFIZ here today, he said that it should be amended as it puts burden on the private sector and consumers.

Shrestha expressed his concern that increasing the tax on electric vehicles might reduce the use of EVs. He said that the consumption of petroleum vehicles could increase again if the clean infrastructure investment fee is imposed.

He said that the budget for the current fiscal year is ambitious. He said that the budget has come with the challenge of resource management. “Only 20 per cent of the capital expenditure has been sustained,” said Shrestha. ’

He said that the budget is trying to move from traditional to transformational. He said that raising the limit of personal income tax to Rs 10 crore is positive.

He says, “The provision that has already been approved by the Investment Board and does not require double approval from other bodies has provided a smooth and hassle-free investment environment.” ’

He also said that the expansion of the country’s first AI Compute Center in Syuchatar is also welcome. He said that the plan to advance the start-up by linking the private sector with grants, concessional loans and co-investment in the initial phase is important.

Stating that although the budget and plans were good in the past, the expected success could not be achieved due to delay in its implementation, he said, pointing out the need of implementing good plans immediately even now.

He said that the budget has not addressed the budget as the FNCCI has informed the small and medium enterprises that their ability to do business will be reduced if VAT is levied for those above Rs 50 lakh. He also said that the FNCCI has suggested to increase the limit of Rs 5 million to Rs 10 million.

According to him, the issue of subsidized electricity consumption has not been implemented by recognising the hotel business as an industry. “VAT is not adjusted and if everyone is charged the same VAT, the price will increase. This will make it difficult to run the industry,” he said.

He said that the business has suffered in the name of IA and EIA. He said that there is a need for flexibility in all industries in the name of EIA and IA. He said that about 500 projects have been stalled at present.

“The project has been delayed due to the Forest Policy and Forest Reservation Policy,” he said. He said that concession in customs duty on imported goods was necessary for the construction of the infrastructure required for the hotel. He clarified that the private sector wants to get the facility to import at 5 percent rate.

“We have to import raw materials from abroad and the cost is high and we are not able to compete with the markets of India and China,” Shrestha said. Therefore, he said that there is a need for concession in the import of such goods.

He says, “Transportation of raw materials is going to be expensive. The previous government had decided to provide Rs 5 billion in concession. But we haven’t found that yet. Stating that the export has decreased and the import has increased, he stressed that the government should adopt a liberal policy on export.