Laws play an important role in economic development

KATHMANDU: In an online economic discussion program organized by the Society of Economic Journalists – Nepal (SEJON) on Sunday, Sementa Dahal, a law expert stressed on the need to have laws that suit the country’s needs rather than being directed by any foreign entities.

Dahal also emphasized on the need to enact laws based on the country’s pace of development and economic condition. Citing the important role of law in economic development, he said that the role of laws is increasing in recent years to run the economy smoothly.

Especially after the United Nations started linking trade with law, the world community has started realizing its importance, said Dhahal.He further explained that even though Nepal also started linking economic issues with laws, they are formulated on the basis of what other countries have or under the guidance of foreign organizations.
He suggested drafting laws as per the country’s need by taking reference of foreign laws.

“We need to understand that legislation should not be made under foreign pressure and stimulation.”

According to Dahal, laws which are supposed to be formulated by the Parliament are still being drafted by the ministries in Nepal. As a result, various laws related to the economy seem to contradict each other. He reasoned that such problems are created when they are made without coordinating with the other ministries and the bureaucracy.
“Laws are less likely to contradict each other if they are drafted by the parliament,” he shared. He also said that political interest and the capacity of the state also matters in the following the laws.
He mentioned that though tax issues are settled quite quickly through the court, issues related to contracts have remained the same in the country for many years. Citing the example of a magnesite mine in Dolakha, he said that the court has not yet ruled on the dispute. However, in case of taxes, the court has given quick verdicts that have made it easier for the private sector and investors.

Fiscal Nepal |
Sunday August 30, 2020, 05:44:08 PM |

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