KATHMANDU: Confederation of Banks and Financial Institutions Nepal (CBFIN), the umbrella organization representing banks and financial institutions (BFIs), has submitted institutional suggestions to the Ministry of Finance (MoF) on various issues to be addressed in the budget of the coming 2022-23 fiscal year.
CBFIN have urged the government to reduce the corporate tax in banking and financial sector from 30 percent to 25 percent. Similarly, the confederation has also suggested the government to reduce the cost of opening a branch in a sector defined by the Nepal Rastra Bank (NRB) to increase banking access would be higher.
Likewise, CBFIN has also suggested the government to deduct 100% of all expenses incurred by banks and financial institutions for the purpose of income tax calculation under the Corporate Social Responsibility (CSR Fund), make special arrangements to issue broker licenses to bank subsidiaries, development banks and finance companies.
Similarly, in order to cope up the recurring liquidity problem, Nepali banks and financial institutions should allow foreign banks and financial institutions to lend at cheap interest rates to foreign currency and calculate the amount in deposits, as per CBFIN.
As per CBFIN, in order to make the economy self-reliant, special emphasis should be given to the agricultural sector and production.