Budget based on 'controlled economy' concept: FNCCI

The umbrella body of private sector, the Federation of Nepali Chamber of Commerce and Industries (FNCCI), has accused that the budget is based on the concept of 'controlled economy.'"Even though the budget raises the subject of liberal economy, it is based on the concept of controlled economy. It has not created private sector-friendly environment. Although it embraces the concept of public-private partnership, it does not encourage the private sector through competition," reads a statement issued by the FNCCI in response to the budget.

"Instead of introducing additional commitments to liberal economy to mobilize domestic and foreign capital, the government is creating a holding company to revive the sick industries rather than hand them over for privatization. This cannot be called as a policy conducive for industrialization," adds the statement.

In a statement issued Monday, FNCCI said though many suggestions put forward by the organisation have been incorporated in the budget, the government still intends to increase its presence in the business sector by resuming its hold on public companies which were in the process of privatisation.

FNCCI expressed dissatisfaction for not addressing its demand to stabilize taxes at least for next one decade, and the failure of the government to implement multi-rate tax regime apropos the Value Added Tax. The FNCCI has demanded its representation in the proposed Central Revenue Board and called for building of infrastructure for Special Economic Zones (SEZs), which have remained on papers despite repeated commitments from the government.

Further accused the government of not acting appropriately on downsizing the imports by encouraging active involvement of the private sector. It said the budget has not addressed the grievances of the industrialists hit by the Koshi havoc.

FNCCI sought support from the government to uplift the industries who were affected by the decade long insurgency due to which they failed to pay back government loans on time. However, talking to reporters on the evening of the budget speech FNCCI chairman Kush Kumar Joshi had said the budget had address most of the demands put forward by the private sector.

Dear Readers and responsible citizens of Nepal, please put your views, what you liked or disliked and what should have been better way for the new act of Budget. The increment of Capital gain tax to 15%... increase in duty for imported vehicles and cut of VAT in hydro sector are these all fair, good or just new government's selfish policies? Please comment.