Kathmandu. Nepal Chamber of Commerce (NCC) outgoing president Rajendra Malla spoke of the need of making country’s economy dynamic through production-oriented budget, expansion of tax net and commercialization of natural resources.

Addressing the programme, Malla said that it was positive to bring production-oriented budget instead of distribution-oriented as in the past years. He was of the view that the economy would be revived and economic activities would expand if the budget was effectively implemented.

He welcomed the inclusion of digital services and good governance programme in the budget, saying it would help make the tax system more systematic and financial transparency. Stating that the opportunity to invest abroad was a positive step, he said the income earned from this could be brought back home through the tax system.

Suggesting that the permanent account number (PAN) should be made mandatory during the distribution of citizenship to expand the scope of revenue, Malla expressed the belief that this would bring every citizen into the ambit of tax system and broaden the revenue base of the state.

Stressing the need of removing legal and administrative hurdles required to bring investment from Non-Resident Nepalis (NRNs), he said many investors were discouraged by the provision of national identity card. He said such obstacles should be removed to create investment-friendly environment.

Speaking about the energy sector, Malla said that although the government gets revenue from the five percent VAT applied to electricity, it should reduce the price of electricity generated during the rainy season and provide relief to the hydropower developers. He said that adjusting the price of electricity in view of wastage of electricity during the rainy season would provide some relief to the sector.

Laying emphasis on the maximum utilization of Nepal’s natural resources, he said that processing, branding and export of herbs products should be prioritized. He was of the view that commercial promotion of non-narcotic cannabis cultivation and scientific management and commercialization of unused trees and forest resources would contribute significantly to economic prosperity.

He stressed the need to advance production, processing, consumption and export of natural resources, agriculture and forest products in an integrated manner for the country’s economic development.