Mahabir Pun urges tax reform, R&D push for industrial growth

KATHMANDU: Rastriya Swatantra Party (RSP) lawmaker Mahabir Pun has urged the government to prioritize research, innovation, and industrial development to drive economic growth and self-reliance.

Participating in the debate on the principles and priorities of the Appropriation Bill, Pun stressed the need for a more industry-friendly tax system, arguing that current policies discourage domestic production.

Drawing from his experience operating an agricultural tools factory in Birgunj, he highlighted a major policy imbalance where imported finished agricultural equipment is taxed lightly or not at all, while raw materials required for domestic manufacturing face heavy customs duties.

“This makes locally produced goods more expensive and uncompetitive,” he said, adding that many developed countries impose little to no tax on raw materials to support domestic industries.

Pun also drew the government’s attention to the absence of a structured intellectual property system in Nepal, noting that inventors are forced to travel abroad to register patents due to the lack of a functional domestic patent office. He called for state subsidies to support costly international patent registration processes.

He further proposed tax exemptions for startups and early-stage innovators to encourage entrepreneurship and technological development.

Emphasizing long-term planning, Pun said research work cannot be confined within a single fiscal year and should be included under multi-year budgeting frameworks.

“Without developing local talent and technology, Nepal cannot achieve self-reliance,” he said, urging the government to address these issues in the upcoming national budget.