Peace and security are vital for business revival: FNCCI President
KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal said that peace and security are the primary conditions for the revival of the business environment.
He expressed this view while speaking at the inauguration of the automated valuation system for customs clearance at the Biratnagar Customs Office on Wednesday.
Dhakal stated that extensive vandalism and arson attacks during the Gen-Z protests on September 8 and 9 caused unimaginable damage to government and private industrial establishments, as well as to personal property. These incidents, he said, have weakened public and entrepreneurial morale.
"After that incident, the morale of entrepreneurs and businesspeople has been weakened. High morale is required for investment. Peace and security are needed to boost morale," Dhakal said.
He added that youth aspirations — controlling corruption, ensuring good governance, creating domestic employment opportunities and making proper use of revenue — can only be met by guaranteeing the right to conduct business freely and by promoting investment and jobs. "It is necessary to create a suitable environment for this," he said.
Dhakal suggested that the government could mobilise corporate social responsibility (CSR) funds for the reconstruction of infrastructure damaged during the protests, but for that to happen, CSR contributions must be allowable as an expense.
Commenting on the new customs valuation system, he described its implementation as positive, mentioning it will eliminate time-consuming, paper-based procedures. "In terms of customs valuation, today we have entered a new phase. Until now, customs valuation was based on reference prices. Entrepreneurs and business people had complained that this was not scientific," he said. He added that for some years, the FNCCI has been urging the government to introduce online valuation in accordance with GATT methods.
In recent budgets, the FNCCI has advocated that customs value be determined fully in line with the methods set out in Article 7 of the WTO/GATT Valuation Agreement, and that transaction value be used accordingly. Since the new system is recognised by the WTO, it is a scientific method that will largely address the problem of under-invoicing and over-invoicing in Nepal’s informal economy.
Dhakal said the government has implemented many positive measures in a short period based on private sector suggestions, and that these will gradually help restore the economy.
The online valuation software was introduced as a pilot at the Biratnagar Customs Office and was inaugurated by Finance Minister Rameshore Prasad Khanal.
