KATHMANDU, JANUARY 26
The private sector has expressed concern over the government's decision to cap cash transactions at Rs 500,000, saying the provision has created operational difficulties for businesses.
Speaking at a programme organised to mark International Customs Day on Monday, business leaders called for a revision of the cash transaction ceiling, which has been in effect since January 15.
The event was attended by Finance Minister Rameshore Prasad Khanal, Federation of Nepali Journalists (FNJ) President Chandra Prasad Dhakal, Nepal Chamber of Commerce President Kamalesh Kumar Agrawal, and other stakeholders.
Speakers stressed the need to amend the provision mandating banking transactions for cash dealings above Rs 500,000. FNJ President Dhakal said access to banking services has not yet been fully ensured across the country, making the restriction challenging for businesses. He noted that the policy may have been introduced due to pressure on the government and Nepal Rastra Bank following Nepal's placement on the Financial Action Task Force (FATF) Grey List.
Dhakal urged the government to revise economic policies to create a more favourable investment climate and prioritise business promotion over customs revenue. He also said the hotel and tourism sectors have not received facilities comparable to other industries.
Nepal Chamber of Commerce President Agrawal highlighted the role of customs administration in trade facilitation and economic growth, calling for stronger economic governance. He said the existing Customs Act contains rigid provisions on penalties and fines, proposed multiple VAT rates, and suggested developing Nepal as a wedding destination.
Meanwhile, Prachin Kumar Thaiba, Chair of the Federation of Customs Agents, emphasised the need to control illegal trade to support economic growth and revenue mobilisation. He called for transparent, technology-driven, and trade-friendly customs systems to facilitate foreign trade.
(With inputs from RSS)
