Businessman demand removal of tax imposed on cotton & woolen yarn
The businessmen have demanded the Finance Minister to keep the practice of not having to register for VAT as residential and small industries are already registered.
KATHMANADU: The Nepal Federation of Exporters has demande the government to abolish the tax on cotton and woolen yarn.
On Monday, Finance Minister Dr. Prakash Sharan Mahat was summoned to the Ministry of Finance and urged that the tax on raw materials for export goods be repealed.
The businessmen have demanded the Finance Minister to keep the practice of not having to register for VAT as residential and small industries are already registered.
Federation Chair Shekar Prasad Pandey stated that the tax should be decreased to 15%, stating that the tax on the prior value of raw materials has been increased to 15%.
He stated that the government’s rise in raw material taxes is intended to boost imports.
He stated that the government formerly provided a 50% income tax reduction to export businesses, but that the tax rate will increase to 20% beginning with the following fiscal year, while the tax rate would remain at 12%.
He stated that the government has asked the finance minister to keep the current tax system in place.
He claims that the government’s monetary subsidy for export businesses is insufficient.
He stated that it was demanded that the government allocate funds to all industries based on production.
