NCC holds discussion on economy with Finance Minister Khanal

KATHMANDU: Nepal Chamber of Commerce (NCC) held a discussion on the contemporary economy in the presence of Finance Minister Rameshore Prasad Khanal on Sunday.

The meeting, held at Chamber Bhawan, Jamal, brought together NCC officials and representatives from private sector organisations to discuss the economic impact of the Gen‑Z protests, the need for an investment-friendly environment, production growth and employment generation.

NCC president Kamlesh Kumar Agrawal presented a series of recommendations to Finance Minister Khanal covering the current economic situation, the investment environment and security, tax provisions, improvement in capital expenditure, real estate transactions and cooperatives.

President Agrawal said, "Just as foreign investors demand a bilateral investment promotion and protection agreement for the guarantee of security, the government must immediately introduce an investment promotion and protection policy to boost the morale of domestic investors as well."

Agrawal called for a customs rate adjustment following India’s widespread GST reductions to ensure a competitive market, and urged that the maximum customs rate be set at 25%.

He also requested that the VAT rate be applied through a dual‑ or multi‑rate system, arguing that "having a single rate for both essential and luxury goods is not appropriate from the perspective of social justice."

President Agrawal urged the immediate abolition of excise duty on all goods produced in Nepal except those on the negative list, and warned that the cooperative sector — described as one of the three pillars of the economy — is in crisis, leaving small entrepreneurs, businesspeople and the public unable to withdraw savings. He said the process of establishing an asset management company must be expedited.

Finance Minister Khanal said creating an atmosphere of trust between the government and private sector is his first priority and confirmed that an investment-friendly environment and employment generation are high on the government's agenda. He added that efforts are underway to simplify the tax payment system and that he is seeking economic solutions "through coordination between fiscal and monetary policies."

At the programme, NCC immediate past president, Rajendra Malla, said the country must become self-reliant in agriculture by utilising fallow land and advocated a policy to strengthen the economy through proper use of remittances.

Former vice president Rajesh Kazi Shrestha said that businesspeople face unnecessary harassment under the pretext of tax revenue, causing a potential flight of businesses, and highlighted high operating and logistics costs. Former vice president Suresh Basnet reiterated the need for proper utilisation of remittances to dynamise the economy.

Likewise, NCC senior vice president Deepak Kumar Malhotra said the economy has not gained expected momentum as the real estate sector remains stagnant. He suggested that the premium charged by banks and financial institutions over the base rate should be a maximum of 0.5%.