Industrialists Demand Government To Bring Rs 200 billion Relief Package

May 19, 2020 | Investopaper

The industrialists have demanded the government to bring a relief package of around Rs.200 billion from the upcoming fiscal year’s budget in order to stimulate the economy suffering from Covid-19.

They have warned that if the relief package is not brought in the budget as the demands of the private sector are not addressed in the policy and program of the coming fiscal year 077-78, the industry will come to a standstill.

Stating that the country has suffered a loss of more than four trillion rupees after two months of lockdown, they have claimed that a package is needed to save the economy from bankruptcy. President of the Federation of Nepalese Chambers of Commerce and Industry Bhavani Rana said that a relief package of at least five percent of the size of the economy should be brought.

The government is preparing to announce the budget for the coming fiscal year on Jestha 15.

Rana claimed that the economy would go bankrupt if a speedy relief package was not brought. “There is an unimaginable crisis in the economy,” she said “A relief package should be brought in the next budget to save the overall economy, including industry and business.”

Citing the example of neighboring India bringing a relief package equal to 10 percent of the GDP, the federation said that due to the small size of Nepal’s economy, a package of at least five percent should be brought. The size of the country’s economy is about 35 trillion rupees. Five per cent of this amounts to Rs 175 billion.

The industrialists have expressed dissatisfaction saying that the Nepali government has remained silent even when some SAARC countries along with India, China, USA and European countries have announced the sizable economic relief package. Shekhar Golchha, senior vice-president of the federation, said that they have requested to bring a package of around Rs 200 billion due to the small size of the economy.

FNCCI President Rana said that a revival package was needed to maintain the morale of the private sector and prevent further damage to the economy. “We are hopeful that the government will address the issue,” Rana said “If the package is not included in the budget, there is no alternative but to shut down the industry and come to the streets.”

The Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries, Nepal Chamber of Commerce and other private sector organizations have been pressuring the government to announce the package. These organizations have demanded monetary, labor and employment, electricity and policy reforms in the package to face the economic crisis. Demands have been made to reduce the bank’s loan interest rate by 5 percent for three years and to set up a refinancing fund of Rs 100 billion.

They also demanded the abolition of service charges and renewal fees charged by banks. They have also demanded reduction of four-month electricity demand charge, postponement of electricity tariff by four months, provision of 20 percent discount on electricity tariff for 15 months and reduction of electricity tariff rate. They have urged to reduce the rate of VAT from 13 percent to 10 percent and requested 20 percent exemption in personal and institutional income tax.


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