May 19: Various umbrella organisations of the private sector have suggested to the government to slash the rate of corporate tax. At present, the government has been collecting 20 to 30 percent corporate tax. Manufacturing companies have been paying 20 percent of such tax while the government charges 30 percent to the banks and financial institutions (BFIs).
The private sector has demanded reduction of the corporate tax by 5 percent for both the manufacturing companies and the BFIs.
The Federation of Nepalese Chambers of Commerce and Industries (FNCCI), the Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) as well as the Nepal Foreign Trade Association made such suggestion to the government during an interaction organised by the Ministry of Finance to discuss about the upcoming budget.
The organisations maintained that the government can expect foreign investment as per its plan if it reduces the rate of corporate tax.
They also demanded that the government declare the upcoming decade (2019-2029) as the Industrialization Decade for developing home-grown industries during the period.
FNCCI President Bhavani Rana, CNI President Satish Kumar More, NCC’s Acting Chairman Kamlesh Kumar Agrawal and NFTA President Him Rawal represented their respective organisations during the interaction.