NCC urges PM Dahal to revitalise economy, address cooperative sector issues

KATHMANDU: Nepal Chamber of Commerce (NCC) has brought the current economic situation to the attention of Prime Minister Pushpa Kamal Dahal.

A delegation from NCC including President Kamalesh Kumar Agrawal, Immediate Past President Rajendra Malla, former President and Chair of the NCC Advisory Council Rajesh Kazi Shrestha, former presidents Mahesh Agrawal, Surendra Bir Malakar, and other office-bearers met with PM Dahal in Singha Durbar today. They suggested revitalising the economy through the effective coordination of fiscal and monetary policies.

In a press statement issued by the NCC, it was noted, "Due to past restrictive policies, the economy has now reached a state of slowdown. Economic activity has decelerated due to business unease, contraction of the share market, and a slowdown in the real estate business, among other factors. The NCC believes that due to the current economic slowdown, the assets of the private sector have depreciated by up to 50%. As most of the provisions of the Income Tax Act, 2058, are unclear, the NCC has urged the prime minister to resolve past confusion and outstanding obligations in excise and customs.

The NCC is of the view that the process adopted by the land revenue office, which recognises the source of current profit without acknowledging the source of past property during the purchase and sale of real estate, has slowed down the real estate business."

The NCC has also urged PM Dahal to take immediate action to address the perceived injustices in the cooperative sector.

In the statement by the private sector umbrella organisation, it was stated, "Small and medium entrepreneurs have suffered because the cooperative sector is problematic. The issues in the cooperative sector should be resolved immediately. 

NCC representatives suggested that there should be a provision to offer a full discount to entrepreneurs who have suffered due to economic recession in the past. They also called for the establishment of a tax management commission for the swift resolution of disputed cases due to tax."

During the meeting, PM Dahal stated that the government is striving to alleviate the current pressure on the economy. He said, "The economy is neither crisis-oriented nor sustainable. Although most of the indicators of the economy are positive, economic activity has not been able to expand."

The Prime Minister stated that the government is drafting policies and programmes to strengthen the foundation of the economy and added that monetary and fiscal policies will be coordinated effectively. A concrete decision will be taken to resolve the problems seen in cooperatives, he said.