Himalayan News Service
Kathmandu, January 19:
In order to minimise consequences of increment in value added tax (VAT) rate, the Confederation of Nepalese Industries (CNI) has recommended some relief measures to the government. A delegation led by CNIâ€™s acting president Rajendra Kumar Khetan today presented its recommendations for relief measures to deputy prime minister and finance minister Bharat Mohan Adhikari.
â€œIncrement in VAT rate by 30 per cent could have a negative impact on industry and investment, which needs to be addressed at the earliest,â€ said Khetan. CNI has suggested the government for some changes in taxation of six broader sectors. Among the recommendations, it has asked the government not to hike VAT rate on food items such as oil, biscuit, noodles and wheat flour and revoke the existing 1.5 per cent special tax levied on all imports. Likewise, a complete waiver of export tax and no tax of export dividend will also be helpful for the industry sector at this difficult time. â€œThe government should float some relief packages for the industry, while increasing tax rates,â€ states CNI statement.