'NBL'S financial condition still strong'

BY A STAFF REPORTER

Kathmandu, Sept 6- Nepal Bank Limited, the oldest bank in the country has reaffirmed that the overall financial position of the bank is strong and reliable. The bank still occupies 30-35 per cent of total banking transactions through its 167 branches across the country.

However, sudden remarks of Dr.Tilak Rawal, the governor of Nepal Rastra Bank regarding the financial health of NBL in the meeting of Public Accounts Committee (PAC) on Tuesday has sparked doubts among the depositors.

Following the governor's remarks it is said that a substantial number of depositors particularly small savers have withdrawn their deposits. But NBL claims that the bank still has a deposit of Rs 35 billion.

And out of 21 billions rupees of loans, nearly five billion rupees have already been settled in the span of last four months.

Out of five billion rupees, nearly 2.75 billion rupees have been received in cash according to the bank.

Further the bank has earned Rs.500 million as interest and has 5.5 billion rupees deposit in Nepal Rastra Bank and other agencies. The total deposit of the bank is 8.5 billion rupees.

Issuing a press release the bank further states that its financial position is quite sound and it assures that the rumors about bank will have no impact at all.

Bhavanath Upadhya, general manager of the Bank says the bank's financial health is quite normal. But Upadhya has declined to make further comments on exact situation of the bank.

Premal Khanal general secretary of the Nepal Bank Employees Association has said that the situation of the bank is quite strong.

Khanal denounces the conspiracy being hatched against the bank and demanded immediate measures to tackle the problems in the bank. 'The rumors will have no impact since the people have a great trust on the bank,' Khanal said.

Regarding the NBL's position central bank's Governor Dr. Rawal has already made it clear that Nepal Bank is in dire need of measures for improvement.

Games to be held in Islamabad
Palikhe to head Nepalese team to 9th SAF Games

BY A STAFF REPORTER

Kathmandu, Sept. 6:A meeting of National Sports Council board of directors decided today to send a team of 157 players to particpate in the upcoming 9th South Asian Federation Games to be organised in Islamabad, Pakistan from October 6-15, 2001.

The meeting sat under the NSC chairman Minister of Education and Sports Amod Prasad Upadhyay also decided to send 49 jury, referees, coaches and officials along with 10 journalists to the South Asia's biennial mega sports events.

According to Nepal Olympic Committee President and NSC deputy-chairman Rukam Shusher Rana, the board of directors today nominated NSC Member Secretary Binod Shankar Palikhe as the chef-de-mission while NSC member Dawa Gurung was nominated as deputy chef-de-mission of the Nepalese 216-member squad that will take part in 14 out of 15 disciplines to be showcased in the 9th SAF Games.

Barring rowing, Nepal will participate in atheltics, football, swimming, badminton, table-tennis, karate, taekwando, boxing, shooting, kabbadi, volleyball, weightlifting, wrestling and squash.

Rana said Nepalese are expected to win medal mainly in three games—karate, taekwando and boxing. "Therefore we are sending our karate team to Iran, taekwando to Thailand and boxing team to Pakistan for further training next week." The task of sending Nepalese players abroad for training will be intensified now, Rana added.

Meanwhile, NSC board of directors has also instructed Rana, Palikhe and NOC Vice President Dhruba Bahadur Pradhan to make all the necessary arrangement to provide all the logistcs support and accomodation needed for the participating players and other officials.

House debates on forests head over

Kathmandu, Sept. 6 (RSS): Deliberations on the appropriations head pertaining to the Ministry of Forest and Soil Conservation in the Appropriations Bill-2001 concluded at the House of Representatives today.

Fifteen MPs took part in the deliberations.

On the occasion Hari Acharya of Rastriya Janamorcha presented an expenditure deduction proposal of Rs. 100 from the appropriations head pertaining to the ministry.

Taking part in the discussions, MPs of the ruling side pointed out the need to stop deforestation and make afforestration programmes more effective, take stern action against forest smugglers, prepare a long-term plan for river control, make the forest policy transparent and run programmes with local people's participation and give serious attention to the conservation of national parks, the natural heritage and medicinal herbs.

Treasury bench MPs Sabitri Bogati Pathak, Ram Kumar Chaudhary, Hridaya Ram Thani and Khem Raj Bhatta Mayalu took part in the discussion.

Likewise, MPs from the opposition party said destruction and smuggling of forests are being carried out in support of state power, forest officers themselves indulged in wood smuggling and the government did not have any far-sighted programme for the sustainable development of forests.

Recommendations for local people's mobilisation in checking deforestation, stern action against forest encroachment, giving continuity to the community forest development programmes, and paying attention to the protection and development of precious medicinal herb like Yarchargumba and plant saplings to check soil erosion in the Chure range were received from the MPs.

Those making the recommendations were CPN-UML MPs Tara Samyangya, Til Kumar Meyangbo, Dharma Nath Prasad Shaha, Sohan Prasad Chaudhary, Shanker Nath Sharma Adhikari, Mahendra Bahadur Pandey, Devi Lal Thapa, Nar Bahadur Budathoki, Ananda Prasad Pokharel and Tuk Raj Sigdel.

Deliberations on the appropriations head pertaining to the ministries of home and local development are scheduled to begin tomorrow.

The House of Representatives will meet again at 11:00 am tomorrow.

National assembly
RPP MP walks out of NA meet

Kathmandu, Sept. 6 (RSS): Balaram Gharti Magar of RPP walked out soon after the start of the National Assembly meeting today announcing that his party is boycotting the meeting in protest against the government's indifference towards the RPP demand for a ceiling on property also.

Ranga Nath Joshi of CPN-UML criticised the government for not paying adequate attention to Indian encroachment upon Nepalese territory.

Bishweshwora Dahal, also of the CPN-UML, complained that despite reliable media reports on the absence of doctors from health posts and the unrestricted sale of outdated medicines, the government has not been able to take any action.

CPN-UML's Bachaspati Devkota expressed concern over the problems of over staffing at institutions like the Agricultural Development Bank due to political pressure and said that if the rumour that the bank is about to hire 25 additional employees on contract basis is true, this should be stopped immediately.

Srimaya Thakali of the same party drew parliament's attention to the problems facing school teachers working in remote districts.

MP Mohan Sharma Chapagain of the same party stressed the need for the government to pay adequate attention to developing a green belt along the ring road and repairing crumbling roads.

Mahesh Mani Dixit, also of the same party, said that it is high time the government paid serious attention to the flaws in the present privatisation policy.

NC's Radheshyam Adhikari described the CPN-Maoists' demand for an interim government, a constituent assembly and the institutional development of Nepal as a republican state as irrelevant and stressed the need for both the government and the Maoists to find a peaceful way out of the problem.

New tax bill aims at more revenue

BY A STAFF REPORTER

Kathmandu, Sept. 6: Tax experts today said that the proposed Income Tax Bill-2001 was prepared on the principles of broad base, low rates, simple structure and operation mode, transparency, social justice and effective reward and punishment system.

"The new Income Tax Bill aims at generating more revenue through the expansion of the tax net, ensuring social justice, making tax administration more transparent and setting up a predictable tax structure," Finance Secretary Dr. Bimal Prasad Koirala told a discussion programme on the proposed Bill here this morning.

Koirala said that the Bill currently under discussion in the parliamentary Finance Committee not only aimed at bringing the untapped areas into the tax net but also promoting social justice through an equitable and progressive tax structure. "In an equitable tax structure, the people who earn less pay less amount of tax whereas those earning more have to pay more."

He denied the private sector's charge that the new Bill was very difficult to be understood but conceded that a few words sounded unfamiliar as they were used for the first time. The taxpayers, particularly the industrialists and businessmen, have criticised the Bill saying that it is very difficult to understand. "The tradesmen's argument that the Bill cannot be understood is simply an excuse to protest against it."

He maintained that the stance was invalid as there was more discussion on the clauses said to be incomprehensive. "The Bill has drawn criticism as it will bring many people into the tax net who were enjoying tax exemptions till now."

Koirala also denied the private sector's argument that many provisions in the Bill were unenforceable. "Most of the provisions in the Bill are already in force."

Tax expert Dr. Rup Khadka said the proposed Bill was prepared targeting revenue mobilisation, equality and economic development. Income tax now accounts for about 21 per cent of the total tax revenue, adding the government had a target of raising its contribution to one third of total tax revenue. He said the progressive tax would contribute to equitable distribution of resources.

"The proposed Bill intends to broaden the tax net, lower the rates, increase the taxable income ceiling, allow self assessment to the taxpayers, and simplify tax structure and its operation mode," Khadka said. "It envisions an equitable, elastic, neutral and economic, and taxpayers friendly tax structure."

He said the new Income Act was necessary to modernise the existing Act, make it more comprehensive, bring all income tax related issues into one Act and to integrate the Nepalese tax administration with the global tax system.

Inland Revenue Department's Director General Vidyadhar Mallik said imposing tax on the basis on the basis of residence was a major departure in the proposed Bill. A person or an institution residing in or working in Nepal for over six months is defined as a resident who has to pay tax to the Nepalese government from all the income. A non-resident has to pay tax on the income made in Nepal. The capital gain tax is another new tax instrument.

In the discussion programme organised by the Society of Economic Journalists-Nepal (SEJON), Society President Gajendra Bista welcomed the participants.

Proceedings smooth
House decides to discuss Land Reform Bill-2058

RITU RAJ SUBEDI

Kathmandu, Sept. 6: House of Representatives today endorsed by a majority vote the proposal of Prime Minister Sher Bahadur Deuba seeking the consideration of Land Reform Bill (Fifth Amendment)-2058 in the Parliament. This paved the way for discussion on the Bill in the House.

The proceeding of the House of Representatives today went smoothly after almost three weeks of disruption by the lawmakers of Rastriya Prajatantra Party (RPP) and Nepal Sadbhawana Party (NSP) over their demand of the ceiling on the property along with the ceiling on land holding.

In today’s meeting, the RPP and NSP MPs boycotted the House and reiterated that they would stick to the demand to impose a ceiling on the property and would continue with their protest programmes for the same purpose.

They said that they would not want to hamper the discussion on the Appropriation Bill taking into consideration the critical condition of the country’s economy.

In his reply to the queries of the MPs regarding the Bill, Prime Minister Deuba said about one million landless people would get land after the implementation of the proposed land reform package.

"The Bill does not centre only on putting the ceiling on landholdings, but it clearly emphasises on the increase of productivity of the agricultural sector," Deuba told the House of Representatives. The tenets have themselves to labour hard for enhancing productivity, he said.

He said that the Bill contains the provisions like providing fertilisers, agricultural tools, seed and irrigation to the farmers for the increase of productivity.

Premier Deuba said that the Bill has been a target from the different sections of the people. "However, I have taken such protests positively," he noted, adding, "The protests justify that I have brought the good programme."

Deuba also expressed the confidence that he would receive the co-operation from the lawmakers in this regard.

Before the boycotting House meet, Pashupati Shumsher Rana of RPP and Rajendra Mahato of NSP, speaking at the Special Hour of the meeting, argued that the proposed land reform programme would not benefit the poor and the landless people of the country.

Saying that they are in the favour of a people-oriented land reform, the protesting MPs, who had led the walk out, said that there would not be social justice until the government put a ceiling on property as well.

Hinting at the rampant corruption, Rana even went on to say that those who wore sandals till yesterday have now become owners of airlines.

While the non-communist MPs of the opposition bench walked out the House, the Left MPs, who dominated the opposition bench, remained within but lambasted the ceiling on landholding proposed by government which they say was too high.

Taking part in the discussion of the Bill, the opposition lawmakers said that the proposed land reform would not provide any relief to the landless, poor and exploited classes of the country since the government would not receive even a piece of land under the proposed ceiling.

They argued that the government’s land reform was not a revolutionary one, rather it would continue serving the interest of the landlords. The Left MPs demanded that the government should put a ceiling of four-and-a-half bigha in the Terai as prescribed by the Badal Commission.

CPN-UML MP Bharat Mohan Adhikari said that the government had broken a 17-point agreement made with the UML. He said that the government had agreed to implement the Badal Commission for a sweeping land reform programme in the country.

Adhikari also pointed out that the Bill has not mentioned about ending the duel ownership on land in the interest of the tenants. He also suggested on rectifying the shortcomings in the Bill by rising above the party interest.

A host of other UML MPs who spoke, including Ananda Pokharel, Pradeep Gyawali, Suresh Kumar Karki, Tara Samyang, Shankar Nath Adhikari, Urmila Aryal and Nara Bahadur Hamal, also criticised the government’s proposed land reform programme.

Lilamani Pokharel of United Peoples’ Front Nepal and Hari Acharya of National People’s Front said that the proposed land reform would not benefit the real farmers. They demanded with the government to reduce the ceiling on the landholdings and for free distribution of the land to the landless.

Pokharel and Acharya also said that the classification of the land was unscientific and added the Bill did not mention about industrialisation of agriculture and development of co-operative in the rural areas.

Naryanman Bijuchchhe of Nepal Workers and Peasants Party said that Bill would ultimately help the landlords to aggrandise more and more land. He said that the ownership of land should pass on to those who till it.

But, countering the Opposition parties argument, Nepali Congress MP Dr. Ram Baran Yadav said that the government had introduced the Bill by making a detailed scientific study on land throughout the country.

Stating that fragmentation of land would technically hamper farm management and, thus, decrease productivity, Dr. Yadav justified that the present ceiling would help increase productivity as well as establish social justice in the country.

'Land reform not anti-Terai'

BY A STAFF REPORTER

Kathamandu, Sept. 6: Several MPs of CPN-UML from the Terai belt denied that land reform is anti-Terai or anti-Madhesiyas (people living in the Terai), which the NSP MPs have been dubbing it in that way.

Two UML MPs, Dr. Bansidhar Mishra and Lalbabu Pandit, said that UML lawmakers, who represent two constituencies of Terai, are not against land reform programme.

Saying that there are rumours that UML MPs of Terai are protesting the proposed land reform, Dr. Mishra and Pandit said, "We are in favour of a revolutionary land reform, but those, who are protesting such land reform, do not serve the interest of Terai, and are ‘anti-Terai’."

They made this remark while taking part in the discussion on the Land Reform Bill (Fifth Amendment) 2058 today.

However, they said, the proposed land programme has no significance since it could not generate any surplus land, thereby would not benefit the poor and the landless of Terai.

Dr. Mishra also demanded that the government should fix a ceiling of four-and-a-half bighas in Terai as recommended by the Badal Commission.

Interestingly the House of Representatives today passed through a brief exciting moment when two lawmakers of ruling Nepali Congress traded the war of words amongst themselves as well as with the opposition.

This happened when NC stalwart Surendra Chaudhari lambasted the government’s land reform calling it ‘airy’ and ‘artificial.’ He blamed that the national leaders are moving without any sum and substance.

As Chaudhari called the CPN-UML General Secretary Madhav Kumar Nepal and NC strongman Ramchandra Paudel as being completely ignorant about land. But another NC MP Rajendra Kharel instantly raised a point of ruling against Chaudhari’s remark, calling it as personal accusation. He said that it drew the Article 36 Parliamentary Act.

Kharel said that all the lawmakers have represented themselves in the House as per their party manifesto. The government has introduced the programme to implement its socialist election manifesto in the country.

Throwing a sarcastic remark in the House, he said that those who looked after the elephants in the forest and lost the money in the gambling have entering the House to dampen the socialistic programme of the government. Many guessed that the irony hinted to a RPP MP.

But Chaudhari defended himself saying that the MPs have individual rights to voice their electorates’ views in the parliament regardless of the party’s attitude.

Chaudhari, claimed that the recently announcement land reform programme was only a political rhetoric and was brought without reaching to the root of the problem.

The present land reform programme would not solve the economic and social problem of land, said Chaudhari.

Stating that ‘we are the sons of the land’, NC MP said that they have emotional relation with the land, which the political leaders could not understand.

He said that it was easy to loot the national coffer and biuld houses in the capital but it was hard to adopt to a farmer's life for livelihood. Becoming excited, Chaudhary even dubbed all the MPs as feudal.

Chaudhari, who had also been ministers several times, blamed that every successive government after the restoration of multi-party democracy of failing to develop the agriculture sector.

He said that the government should provide subsidy and facilities to agriculture such as fertiliser, seed and management of irrigation for the green revoluton.

Stressing on generating national capital, introduction of progressive tax system and investment in non-agriculture sector, he said that the national account and big business houses are moving abroad as most of the agricultural industries of the country are on the verge of collapse.