Budget draws mixed reaction from various quarters

By a Post Reporter

KATHMANDU, May 31 - The budget for the fiscal year 2000/2001, presented by Finance Minister Mahesh Acharya in the parliament on Tuesday drew mixed reaction from various quarters.

Nepal Foreign Trade Association, in a press release issued today, has appreciated the programmes relating to foreign trade incorporated in the budget.

However, it has also highlighted the various negative aspects of the budget. While it has termed the reforms introduced in Value Added Tax (VAT), among others as positive, it has termed the imposition of tax on exports as negative at the same time.

Similarly, another press release received from General Federation of Nepalese Trade Unions (GeFONT), the budget has been prepared in a conventional manner without proper study. Although the salary hike is positive, it is regressive in nature, the release states.

Our correspondent from Pokhara adds that local businessmen and entrepreneurs welcomed the budget. However, they stressed upon the need to pay proper attention to implementation.

Vice-President of Pokhara Chamber of Commerce and Industry Basanta Udas said although VAT is taken as the main source of revenue collection, it will not achieve the goal if revenue leakage is not stemmed.

On the other hand, our correspondent from Bhairahawa reports that locals reacting to the budget have said that it is too ambitious.

Former deputy governor of the Nepal Rastra Bank and economist Harihar Dev Pandey is of the opinion that though some of the provisions in the budget are good, it is ambitious. "The budget contains more expenditure than income. This would call for monetary expansion which might invite inflation considerably," he argued.

President of Rupandehi Chamber of Commerce and Industry Mahendra Narayan Shrestha has termed the budget discouraging to businessmen.

"The need to register with VAT for purchasing goods worth over Rs 10,000 is not practical," he said.

Our Biratnagar correspondent adds that industrialists and entrepreneurs, reacting to the budget have appreciated it, but cautioned that its success would depend upon its implementation.

According to Jagdish Prasad Rathi, vice-chairman of Revenue Sub-committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the budget as a whole is positive but its effectiveness will depend upon how well the plans and programmes are implemented.

He said that the budget has addressed the problems of the industrial sector, which is encouraging. The government’s initiative not to change the Value Added Tax (VAT) threshold and to provide some more time to register with VAT is also welcomed.

Chairman of Nepal Industrial and Commercial (NIC) Bank Jagdish Agrawal also asserted that the budget is optimistic in its approach. However, problems may be encountered in its implementation, he said.

Chairman of Morang Trade Association, Uday Prasad Ojha said that the budget has focused on bringing more transparency in the conduct of business, which is necessary. Moreover, the emphasis laid by the budget to control corruption, eliminate smuggling and to curb revenue leakage is essential, he added.

President of the Morang Chamber, Sushil Dhanawat also called the budget as bright and action-oriented. Various programmes of the budget such as development, revenue, security and salary of civil servants among others are all supportive. As a whole the budget contains nothing that needs to be commented upon, he said.

Although he appreciated the various aspects related with VAT and the introduction of the need to conduct transaction with India above Rs 16,000 through banks, he doubted if the programmes could be successful in its implementation.

According to Industrialist Dinesh Golchha, the budget’s target to ensure maximum utilization of locally available resources is desirable but it should be implemented with the same spirit the budget was presented.

Knowledge on GSP enhances export

By a Post Reporter

KATHMANDU, May 31 - At a time when the private sector is expected to take lead in the development endeavor of the country, it’s important that the sector has a good knowledge about different provisions and facilities related with the export of Nepalese goods to the global market.

With an objective to apprise different concerned government agencies and the private sector of Generalized System of Preference (GSP) and Rules of Origin, Ministry of Industry, Commerce and Supply in association with United Nations Conference on Trade and Development (UNCTAD) organized a national three-day seminar today.

Inaugurating the seminar, Minister for Industry, Commerce and Supplies Ram Krishna Tamrakar said it was opportune moment to review the GSP facilities provided by the developed countries to the least developed ones. He said the government and the private sector should take responsibility to implement the facilities to the fullest and utilize it to enhance export of the country.

However, he added, Nepal should utilize the facility and enhance its capability to compete in the international market very soon. "It is not sure that we will always be provided with such facility," he added. In the present context, he said, Nepal should continue GSP along with few obligations associated with it.

On the occasion Minister Tamrakar also announced that the government has been aiming to organized Nepal Investment Forum in one to two years of time, for which it has already asked for the assistance with international supporting agencies.

From the Chair, Minister of State for Industry, Commerce and Supplies Narendra Bikram Nemwang said the knowledge about GSP to the private sector would help country grow its economy. Highlighting the importance of private sector in the development of the country he said, "National economy can be strengthened only with the participation of the private sector."

Secretary of Industry, Commerce and Supplies Mohan Dev Pant said that the seminar’s objective was to provide the government support to the private sector. He said, the seminar was being participated in by 27 organizations and 85 representatives.

On the occasion, UNCTAD’s representative M Igami expressed his agency’s willingness to support Nepal, and share knowledge with the country. Diwakar Golchha, Second Vice-President of Federation of Nepalese Chambers of Commerce and Industry expressed hope that the private sector would benefit from the seminar.

Talks to promote Nepal-China tourism

By a Post Reporter

KATHMANDU, May 31 - A delegation of the Hotel Association Nepal (HAN) met with Chinese Ambassador to Nepal Zeng Xuyong and held talks to promote tourism between China and Nepal.

According to a press release, during the meet, president of HAN Narendra Bajracharya spoke about the potential of tourism between the two countries. President Bajracharya expressed the hope that Ambassador Xuyong would take initiative to include Nepal as an outbound destination of China.

Bajracharya urged to set up a tourism information bureau in the capital for publishing tourism related information of China and Nepal’s representative office in Beijing to expose the Himalayan country in the Chinese market.

The press release states that President Bajracharya sought assistance from Chinese government for the development of Kailash Mansarovar, a tourist destination located nearby the Chinese borders which is popular all over the world.

Similarly, Chinese Ambassador Zeng Xuyong said that there exists enormous potential for promoting tourism between Nepal and China. The Ambassador was positive on the issues put forth by HAN for mutual cooperation between the two nations.

Present at the delegation were immediate past president Gautam Das Shrestha, secretary Ajay Ratna Sthapit, treasurer Sagarman Shrestha, executive member Prasiddha Pandey and executive director Madhav Om Shrestha.

Gateway Computers in Nepal

By a Post Reporter

KATHMANDU, May 31 - Gateway, a San Diego-based Fortune 250 company, the world’s fifth largest PC manufacturing company has appointed Sigma Resources Pvt Ltd as its authorized resaler for Nepal. It was announced by Bob Ang, the sales manager of Gateway Singapore.

Nepalese resaler Sigma organized the launching programme recently with the display of Gateway Computers from the file servers to PCs and Laptops. The highlight of the evening was the sleek eye catching "Gateway Profile" that has changed the shape of the computing by combining the best desktop and laptop technology. It also displayed Gateway Profile, all-in-one computing solution that delivers the best in design, efficiency and style.