 |
Kathmandu,Thursday June 01, 2000 Jestha 19, 2057.
|
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.
Other Stories
|
