Kathmandu. KATHMANDU: The Federation of Export Entrepreneurs Nepal (FNPA) has welcomed the budget unveiled by the government for the fiscal year 2083÷84 which has partially addressed the important demands of policy and tax reforms that have been raised by the private sector for a long time. Stating that the budget has given a positive signal to boost the morale of the private sector, the FNCCI has urged the government to make the implementation side more effective.

According to the FNCCI, doubling the limit of personal income tax exemption to Rs 1 million, reducing the maximum tax rate by 10 percent, abolishing the excise duty on 360 items and reducing the customs rate from 11 levels to seven levels are welcome steps. Likewise, the arrangement of keeping the customs duty on industrial raw materials at least one level lower than that of the finished goods and the amendment to the Companies Act and Foreign Investment Act would ease the foreign investment withdrawal process, the FNCCI has expressed the belief that it would attract domestic and foreign investment.

The arrangement of 50 per cent tax exemption on income earned from the export of IT services and 100 per cent tax exemption on sweat equity would help develop Nepal as an IT hub. Opening the legal way for the private sector to trade electricity in the international market, a plan to transform the Nepal Electricity Authority into a tripartite company and branding of health tourism are also seen as positive steps.