By Our Reporter
Finance Minister Janardan Sharma is now in the soup after the media reported that an authorised person had entered the Ministry of Finance the night before the Minister presented the budget and revised the tax rates, which were dragged into controversy.
After the media reports revealed that a former Nayab Subba had made changes in the tax rates, Minister Sharma is under attack from all quarters. Even it was reported that Maoist supremo Pushpa Kamal Dahal suggested him to step down.
The CPN-UML that had earlier ended the House obstruction disrupted the House session on the same issue. Although Minister Sharma refuted the allegations, the UML sought that the footage of CC cameras should be presented in the House to find who the person was to make such illegal revision in the budget document. After the UML disrupted the House, it was postponed on Tuesday.
Immediately after the budget speech, the Minister was criticised for imposing high taxes on local products like noodles, electric vehicles, mS wire, rods and sanitary pads. The tax rates intended to discourage the local products and helped the traders who were supplying them from abroad. It is rumoured that Finance Minister Sharma had made the revision in the tax to please Arzoo Rana, the spouse of Prime Minister Deuba, as her brother had engaged in the trade of these goods.
Of course, it was policy level corruption committed in the protection of the Prime Minister’s wife. Now when the issue had entered the parliament, Minister Sharma will find it difficult to continue in the office. Moreover, if the CC camera footages are presented in the parliament as demanded by the UML lawmakers, it will further disclose many facts and faces behind the irregularities.
Earlier, the business community engaged in the production of the local goods had objected to the high tax rates imposed on the local produces.
From Biratnagr to Birgunj, the entrepreneurs had demanded correction in the tax rates.
On June 11, the private sector’s umbrella organisations have drawn serious attention to the fact that the provision made in the budget on the rates of revenue, including customs and excise duty, will affect the domestic industries and businesses.
Issuing separate press statements, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) urged the government to address the impact on MS (Mild Steel) wire, ghee and oil and sanitary pad industries immediately citing that the new arrangement by the government will lead to closure of domestic industries.
In the budget of the government for the fiscal year 2022/23, the rates of revenue, including customs and excise duty, have been changed.
The FNCCI and the CNI have mentioned that they have paid serious attention to the fact that the domestic industries and businesses have been affected by such new provisions. The FNCCI has said that it has not consulted with the stakeholders while making the new arrangement.
The FNCCI demanded with the government immediately address the problems faced by the industry through the provisions included in the budget and the Finance Act unilaterally without consulting and against the suggestions of the entrepreneurs.
Enterprises, including steel rolling mills and MS wire industries, vegetable oil industry, sanitary pad manufacturing industries have come to a standstill due to the provisions made in the business budget, said the CNI.
Similar were the demands from the businessmen of Biratnagar and Birgunj.
Giving up to 90 per cent exemption in the customs duty on the import of ready-made sanitary pads keeping unchanged the customs duty, excise duty for the import of raw materials has reduced the competitiveness of the domestic industries and created a situation where the industry itself will be shut down, they said.
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