Kathmandu, April 10

Prime Minister Pushpa Kamal Dahal has assured industrialists that they will not be the victim of double taxation in the new federal system.

Addressing the 51st annual general meeting (AGM) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today, Dahal said that businesses paying taxes to the provincial government will not have to pay taxes of similar nature to the central government. “Though all three tiers of government — central, provincial and local — have the authority to impose taxes, businesses will not have to pay same nature of tax to more than one government. The government is working on it,” Dahal said.

Similarly, the prime minister also said that private sector is the main driver of economic growth of the country and both the government and private sector should work hand in hand to enhance Nepal’s economy. “Export-led economic growth is what Nepal needs today. The government and private sector together face the national challenge of higher economic growth and development,” Dahal added.

Dahal expressed his commitment to make existing policies friendly for businesses and investment. “We have already reformed some policies and others are in the line to be amended,” he said, adding that the government is also gradually reducing administrative hurdles for businesses.

Also speaking during the event, Pashupati Murarka, president of FNCCI, said that a lot needs to be done by the government to achieve economic prosperity in the country. Informing that the recent investment pledge of $13.52 billion expressed by foreign investors in the Nepal Investment Summit is a hint that investment climate is improving in the country, Murarka said, “If these investment pledges are turned into reality, Nepal can achieve historic economic growth.”

However, Murarka said that development in energy sector, good labour-employer relations, one-window policy for administrative works of businesses, policy reforms, increase in consumption of domestic goods, corruption control, stability in bank’s interest rates for businesses on loan and export promotion, among others are the key factors to drive country’s economy and development.