Kathmandu, May 19:

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has asked for an immediate annulment of local development (kabadi) taxes within a month.

A national conference — of the entrepreneurs organised by the FNCCI in association with Birgunj Chambers of Commerce and Industry, yesterday in Birgunj — has also asked the government to form a committee to recommend alternative to kabadi tax and stop, for the time being, the new tenders.

“We urge the government to cancel the kabadi tax immediately, as it has created more confusion,” they said, adding that though it is helpful in local development, tax-collectors appointed by District Development Committees are playing foul. “Apart from cancellation of kabadi tax, simplification of the tax system is also a key.”

The umbrella body of the Nepali private sector strongly asked the government to form a task force to draft a plan for improvement in tax system.

FNCCI reiterated its acknowledgement for the concept of Public Private Partnership envisioned

by Local Governance Act 2055 BS that had allowed local bodies to collect taxes. “However, there are various irregulariti-es like multiple-taxing and lack of monitoring of contractors.”

Inaugurating the meet, Kush Kumar Joshi, FNCCI president said the local bodies did not obey the directives of the Local Development Ministry and went on appointing contractors in clear violation of the law despite FNCCI’s repeated protest.

“The industrialists are ready to pay taxes and fines in accordance with the law,” he said, adding, the multiple tax has fuelled the price-hike of all the food items.

Joshi, making the private sector’s opinion clear, said conservative thinking, undemocratic practices and lawlessness are some of the setbacks.

He laid stress on the need for private sector’s major voice in the revamp of revenue structure,

its simplification, clear policies and laws, and their effective implementation.