FNCCI welcomes the budget for 2023–24 with caution

KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has cautiously welcomed the budget for the fiscal year 2023–2024.

The umbrella organization of the private sector applauded the government-sponsored initiatives that might help to address the problems with long-term investment in the economy in a press release on Monday.

The statement read, “However, the budget has failed to introduce measures to minimize the impacts of the ongoing recession in the economy.”.

Among the few hospitable actions of the government that the FNCCI has mentioned are giving preference to local products even if they are more expensive by up to 20%, provisions to encourage cultivation in waste land, development of special economic zones and industrial zones, subsidies to startups, and simplification of official procedures for opening new businesses.

The statement went on to say that changes to direct tax rates and bases would hurt the economy and prolong the current recession.

The FNCCI claims that the budget makes no mention of improving liquidity flow, building infrastructure, or creating aggregate demand, all of which are crucial elements in resolving the recession issue.

The FNCCI noted that another negative aspect of the budget is the widespread imposition of taxes without considering how they will affect the general public and business owners.

In an effort to increase revenue and reach its fiscal year 2020 revenue goal, the government appears panicked and is raising unnecessary taxes. This will put businesses off at a time when the economy is in a state of crisis due to the recession. ”.

The FNCCI has also criticized the government’s decision to charge VAT on imported agricultural goods. Numerous farm products, including fruits, have already seen price increases in the neighborhood market as a result of this.

While this is going on, the Federation of Handicraft Associations of Nepal has praised the annual budget for the fiscal year 2023–2024, noting that it aims to boost confidence in the private sector by anticipating broad-based and sustainable economic growth.

The umbrella organization of handicraft producers has praised the promotion of the Make in Nepal and Made in Nepal campaigns, special economic zones, and the registration of collective trade marks in several nations. .

However, the federation expressed its displeasure with the government’s lack of interest in enforcing the public-private partnership model for implementation of certification and promotion of design of Nepali handmade products and establishment of craft village, among other things.