Indian businessmen in Nepal have complained about equal tax rates imposed on both raw materials and manufactured goods.
Representatives of the Indian companies operating in Nepal expressed grievances during a meeting with Deputy Prime Minister and Foreign Minister Narayan Kaji Shrestha and demanded reduction in the custom duty on raw materials.
Speaking in the meeting, the Managing Director and Country Manager of the Nepal-India Chamber of Commerce and Industry (NICCI) urged Minister Shrestha to bring policies to promote industries in the country.
“The representatives of Indian companies operating in Nepal held a meeting with Foreign Minister Narayan Kaji Shrestha,” said Keshav Man Singh, the general manager of the NICCI, “The industries established in Nepal are facing challenges to compete with the imported manufactured goods.”
Despite government claims of differentiated tax structures for finished goods and raw materials, domestic industries in Nepal still face high import duties on raw materials, hindering their competitiveness.
“The government policy should be to promote productions. Nepal's construction and manufacturing sectors are still reeling from the negative impacts of the COVID-19 pandemic,” said Singh, “The interlocutors predicted that it would take two to three years for Nepal to recover economically.”
Participants in the meeting included Surya Nepal Managing Director Ravi Rayavaram, Berger Jenson & Nicholson, Berger Paints Country Manager Saibal Ghosh, Unilever Nepal Managing Director Amlan Mukherjee, Director Ravi Bhakta Shrestha, Standard Chartered Bank Deputy CEO Gorakh Shamsher Rana, Asian Paints Nepal Managing Director Abhiman Bararia, Dabur Nepal Finance Controller and Director General of NICCI, Keshav Man Singh.
Foreign Affairs Minister Shrestha stated that Nepal's economy is not running smoothly. He pointed out that Nepal has not been able to increase exports and is dependent on remittances.
Minister Shrestha assured that he will address their issues in consultation with the Prime Minister, Finance Minister and Industry Minister.
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