Private sector demands policy stability, investment promotion through new budget

KATHMANDU: The private sector has stressed that the budget for the upcoming fiscal year 2025/26 should open avenues for policy stability and investment.

At a meeting of the Finance Committee of the House of Representatives (HoR) today, representatives from the private sector called for the declaration of the coming decade, 2025–2035, as an "investment decade" and for further promotion of the private sector.

The meeting focused on the forthcoming budget and its potential priorities. Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Anjan Shrestha said that the private sector expects the new budget to incorporate strategies for expanding an open economy alongside social justice and to usher in a new phase of economic improvements.

Shrestha said the budget should prioritise increased development expenditure over general expenditure, enhance people's purchasing capacity and boost industrial production and productivity. He added, "an investment-friendly atmosphere with policy stability is the need of the hour." He also urged the government to prioritise industries capable of replacing imports, demanding a 40% income tax discount for production-based, tourism and service-based industries that create jobs for over 100 individuals.

National Council member of the Confederation of Nepalese Industries (CNI) Laxmi Prasad Subedi called for promoting the private sector by reducing income tax rates for production-based industries. He echoed the need to increase capital expenditure.

The Acting President of Nepal Chamber of Commerce (NCC) Deepak Kumar Malhotra stressed the necessity of ensuring policy stability through the forthcoming budget, along with the promotion of electric devices including electric vehicles.

Lawmakers Purna Bahadur Tamang urged the government to present an inclusive and balanced budget, taking into account the country's development status, whilst Narayani Sharma underscored the need for cooperation with the private sector in developing the national economy.

Surya Bahadur Thapa Chhetri called for the size of the national economy and average life expectancy to be considered when determining the social security allowance. "The state is not supposed to take back or cut the social security being given to the citizens," he said, adding that cases permitting a citizen to receive double benefits should be ended.

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