Nepal National Business Federation Demands Tax Reforms and Collateral-Free Loans

Kathmandu. The Nepal National Business Federation has demanded that the government provide collateral-free loans of up to 2.5 million rupees and increase the income tax exemption threshold to 1 million rupees. The federation presented these demands during a discussion with Finance Minister Dr. Swarnim Wagle. 

Federation President Manoj Babu Shrestha stated that they have requested the Finance Minister to facilitate solutions for small and medium-sized business owners, improve the tax system, and implement scientific house rent regulations.

The federation has demanded the implementation of a single-window tax system to eliminate the hassle of submitting the same documents in multiple places. They also proposed increasing the income tax exemption threshold to 800,000 rupees for unmarried individuals and 1 million rupees for married individuals, considering current inflation. 

Furthermore, they suggested that proprietorship firms should be taxed at a maximum of 25 percent, similar to companies, and that the 2 percent luxury tax on gold and silver businesses should be abolished. The federation also demanded an end to the practice of reopening tax files after 15-20 years citing mismatches, proposing instead a system where reviews are completed within one year.

The federation suggested increasing the PAN transaction threshold for taxable goods from 5 million to 20 million and from 3 million to 10 million. They also advised that only transactions where a seller has sold goods worth more than 500,000 annually should be entered into Schedule 13. 

They also recommended provisions for zero-cost business registration in the upcoming budget and ensuring that business owners receive direct state services and facilities based on their tax payments. 

The federation demanded that small and medium-sized businesses be provided with concessional loans of up to 2.5 million rupees without collateral based on local government recommendations. They also called for removing blacklisted businesses from the list after a set period, providing them with renewed credit to restore operations, and offering short-term concessional loans to struggling cooperatives based on asset valuation to ensure the return of depositors' funds.

They suggested strengthening security mechanisms to curb illegal imports, valuing goods at customs based on actual transaction bills, and reducing customs tariffs. The federation also urged the Finance Minister to form a House Rent Determination Commission to resolve disputes over excessive rent hikes and to implement scientific house rent standards in urban areas. 

The federation also met with Minister of Industry, Commerce and Supplies Gauri Kumari Yadav to request facilitation regarding the recently mandated MRP. President Shrestha informed that both the Finance Minister and the Industry Minister have promised to coordinate with relevant agencies to address the federation's demands.