NCC praises budget ‘cautiously’

KATHMANDU: The budget 2009-10 has generated mixed reactions among Nepal Chamber of Commerce (NCC) members.

Surendra Bir Malakar, president of NCC welcoming the decision to eliminate syndicate system, said that the budget is very ambitious and populist. The budget’s provision to collect the loss of Rs 31 billion from the internal loan is not in favour of the country, Malakar said adding that the request of private sector to change current VAT regime to multiple rate of one, four or 13 per cent has not been addressed by the budget that has discouraged the private sectors and also rose questions in the efficiency of the government.

“The budget has number of defects such as the dissolution of the VAT discount that the agro-based companies like oil, flour, Vanaspati ghee industries were getting, lack of proper programmes to cope with the unusual climatic changes, lack of clarity in the policy of establishment of the hotels, banks, lodge, restaurants in one place, inability of the government to address the private sector’s demand of compulsory use of national products in order to promote domestic industries,” said Suresh Kumar Basnet, vice-president of NCC.

NCC has been demanding the government to introduce clear vision on creating investment-friendly environment, employment opportunities and re-establishment of the closed industries.

“Time and again, we have said that there is a need of behavioural change,” he said.