Kathmandu. The government has unveiled the budget for the fiscal year 2082/83 BS to help increase private sector investment to build a dynamic economy by recognizing the challenges of the current economy. With the balanced budget, some sectors have been given high priority. The government has given priority to the promotion of private investment by making more policy, legal and procedural reforms in the sectors contributing highly to economic growth through the budget.
The special economic zone and industrial zone will be given a rent waiver for the first three years, the monthly rent of the special economic zone will be Rs. 100 per square meter. Reduced from Rs. 20 to Rs. The Confederation has welcomed the issue of maintaining 5, providing facilities similar to special economic zone industries if the industries in the industrial sector export more than 30 percent of the production.
Similarly, the Confederation has welcomed the announcement of providing facilities to the companies constructing industrial zones at par with hydropower generation companies and industries established in such industrial areas at par with industries in special economic zones, reducing the fixed monthly rent rate for the industrial sector by 50 percent, reviewing the laws related to land acquisition and demarcation.
The Confederation had been urging to establish and operate incubation centers to promote startups and entrepreneurship. Through the budget, the government has announced to run incubation centers in collaboration with the government, universities and the private sector. The confederation believes that 75 percent tax exemption will be given on the income earned from the export of INFORMATION technology services, only 5 percent income tax will be levied on the income of the people who export information technology services abroad living in Nepal and this tax will be final, the provision of income tax and electricity tariff exemption for five years for startup businesses with annual turnover of up to Rs 100 million, the provision of income tax and electricity tariff exemption to IT-based industries and hotels and resorts like special industries will attract investment in the information technology and startup sector. ।
The issue of allowing Nepali businessmen or companies to set up processing factories by exporting sales branches or semi-processed goods abroad and allowing them to invest up to 25 percent of the annual income from export abroad is far-reaching. It has been welcomed by the Confederation.
It is believed that blacktopping with RCC slopes using cement, rods, ballast and balwa, carrying out a detailed study to construct standard gauge standard electric railways, and developing a systematic city in partnership with the private sector will accelerate the development of the economy.
The Confederation had suggested the provision of multi-rate value added tax. Through the budget, the government has said that it will review the laws related to VAT, income tax and excise duty and study its relevance and practical use in view of the suggestions received to implement a higher rate in vat. This has been welcomed by the Confederation. The Confederation has requested to give high priority to the study in this regard and create the necessary environment to implement a high rate on value added tax.
According to the budget, it will be facilitated to provide working capital loans to productive, tourism and construction industries as well as housing development companies in a simple and accessible manner. The Confederation believes that this policy will be implemented through the upcoming monetary policy.
After the approval of the report, the confederation believes that if the number of trees decreases before cutting or increases by 10 percent, the provision of supplementary environmental impact assessment will help in completing the project on time.
The Confederation has been demanding that the private sector be allowed to build and operate the industrial sector. The Confederation has requested to implement the announcement of construction of modern industrial zones at Shaktikhor of Chitwan and Mayurdhap of Makawanpur with the participation of the private sector through the Investment Board and the special economic zone at Panchkhal and Simara with the participation of the private sector.
Arrangements will be made for internal use and export of mining and river-based construction materials, and arrangements will be made to lease government-owned land, including forest areas, for the construction of hill stations, hotels, lodges, resorts and other tourism infrastructures in major tourism areas. The confederation has positively taken the issues of exempting hotels and resorts from income tax and electricity tariff on par with productive industries, commercial use and sustainable management of forest areas without adversely affecting the environment and biodiversity, removing the provision of re-measurement before cutting the measured trees while giving possession of forest areas, encouraging the seasoning industry to increase the quality production and consumption of wood and wood products.
It is believed that the announcement of partnership with the private sector in the construction, operation and infrastructure development of data centers, feasibility study of setting up data centers in mid-hill areas to attract foreign investment in the information technology sector, and the announcement of providing land, uninterrupted electricity and security to domestic and foreign companies who want to establish data centers will bring a new dimension to the development of information technology sector.
