CNI urges govt to prioritise industry, boost investment in next budget

KATHMANDU: Confederation of Nepalese Industries (CNI) has urged the government to prepare a budget that prioritises industrial expansion and boosts investment for the coming fiscal year.

A delegation led by CNI President Birendra Raj Pandey met Finance Minister Dr Swarnim Wagle in Kathmandu today and pressed for a budget for upcoming fiscal year 2026/27 focused on income generation, wealth creation, economic growth and increased investment. The group called on the government to place the private sector at the centre of its development strategy.

The CNI highlighted a range of sectors it wants reflected in the budget, including foreign direct investment, tax policy reform, customs, tourism, agriculture, energy, information technology, banking, insurance and infrastructure development. The umbrella organisation of private sector argued that industry should be the primary focus and urged the adoption of stable policies over a minimum period of 10 years to give businesses certainty.

Among the CNI’s specific proposals were simplification of the tax system, clearer guidelines on VAT and income tax, and a reduction in personal income tax thresholds to one million rupees. The delegation also recommended a shift to a risk-based audit system, faster resolution of tax disputes, digitisation of tax administration and improved coordination among agencies to curb revenue leakage.

The CNI delegation asked for policies that would encourage private sector participation in large infrastructure projects and allow industries greater flexibility in managing land and financial obligations.

Responding to the delegation, Finance Minister Wagle acknowledged that private sector investment is essential for development and said legal and tax system reforms are needed. He reiterated the government’s position that sustainable development requires strong private sector engagement.