KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has submitted its recommendations to the government for inclusion in the Policy and Programmes for the upcoming fiscal year 2025/26.
On Wednesday, FNCCI President Chandra Prasad Dhakal presented the suggestions to the government through the Minister for Industry, Commerce, and Supplies, Damodar Bhandari.
In its submission, FNCCI emphasized the need for the government to ensure the formulation and implementation of necessary regulations, with a focus on effective execution and the continued implementation of policy reforms. The Federation noted that while some positive signs of these reforms have been observed, more work is required.
One of the key proposals is to maximize the use of technology in business processes such as registration, renewal, tax payment, and deregistration. The FNCCI suggested providing all business services through an online platform, including a “business icon” on the Citizen App for easier access.
Furthermore, FNCCI proposed that the government service system be made more efficient through the adoption of the ‘smart’ service concept and called for a separate policy to encourage foreign investment.
“Foreign investment in Nepal accounts for only 0.2 percent of GDP. To increase this, a special investment campaign should be launched. The Office of the Investment Board and the Department of Industries should be merged and restructured, and the ‘one-stop’ service center should be fully implemented,” FNCCI recommended.
The Federation also stressed the need for a streamlined process for investors, ensuring that they don’t have to visit multiple offices after submitting necessary documents. Additionally, FNCCI pointed to the slow pace of investment despite Nepal’s banking system having approximately Rs 600 billion in potential investment.
“Although interest rates have dropped by three percent over the last three months, the disbursement of investment remains slow. We recommend that the current capital loan guidelines introduced by Nepal Rastra Bank two years ago be reviewed and postponed for at least two years,” FNCCI stated in its suggestions.
The Federation also called for an immediate policy to promote Nepali agricultural products and the export of water to Gulf countries. To facilitate exports, FNCCI proposed setting up cold storage, X-ray machines, and warehouse facilities at airports, capitalizing on the 12 daily flights between Nepal and the Middle East.
Additionally, FNCCI recommended a gradual reduction in taxes by five percent over the next five years to promote manufacturing industries, as well as a decrease in income tax rates and an increase in the tax exemption limit to further support economic growth.
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