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Sat, June 22, 2024

FNCCI demands correction of policies against domestic industries

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KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has demanded the government immediately address the problems being faced by industries due to the provisions included in the budget and the Finance Act unilaterally without consulting and in contrast to the suggestions of the entrepreneurs. FNCCI has drawn the government's attention to the fact that the domestic industries and businesses have been affected by the provisions made in the budget for the fiscal year 2022/23. Enterprises including steel rolling mill and MS wire industry, vegetable oil industry, sanitary pad manufacturing industry among other enterprises have come to a standstill due to the provisions made in the budget, FNCCI said in a statement issued today. In the budget statement, the wire steel producing industries are unable to compete with the imported goods as the import of raw materials used by the MS wire industry has been increased from 5% to 10% and the excise duty has been increased from Rs 2,500 to Rs 4,500 per tonne. Similarly, the policy of charging 5% customs duty on the import of refined palm and palmolive oil that allows other industries that use oil to import directly seems to put the existing vegetable oil industries in serious crisis. FNCCI has asserted that this is also against the government's policy of maintaining at least one level of different tariff rates on raw materials and finished goods formulated to protect the domestic industries. Keeping the customs duty and excise duty being paid by sanitary pad manufacturing industries, and the customs duty on the import of raw materials the same while offering 90% discount on the import of finished sanitary pads has created such an environment that can put domestic industries to a standstill, the private sector's organisation stated. FNCCI has also demanded an end to the excise duty on raw materials stating that it will directly affect industrial production. Enthusiastic entrepreneurs are disappointed by the budget that stipulates doubling the exports in the coming fiscal year, reducing the imports by at least 20% and balancing the trade within the next five years, according to FNCCI. Therefore, as dozens of industries and businesses have been shut down forever and thousands of jobs have been lost, there is a strong demand from the In view of the shut down of industries and businesses, and thousands of job losses, FNCCI has demanded the government amend such provisions immediately. READ ALSO:
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MAY 2024

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