IT sector sees new hope as budget prioritises digital transformation: CAN Federation

KATHMANDU: Federation of Computer Association Nepal (CAN Federation) has responded positively to the budget for fiscal year 2024/25, which was presented by the government on Tuesday, stating that it is beneficial for the Information and Communications Technology (ICT) sector. According to the CAN Federation, IT development has been included in five transformative areas in the budget, which shows new hope.

CAN Federation President Ranjeet Kumar Poddar expressed satisfaction that the budget addresses many needs of the IT sector.

"We have been lobbying repeatedly to prioritise the ICT sector since its inception. The budget for next fiscal year has brought a positive wave in this area," said the CAN Federation President Poddar, "If the programme presented in the budget is implemented, the country will truly embark on the path of transformation."

In this budget, various programmes have been announced to develop Nepal as an IT hub. Under this, the government has projected that exports in the IT sector will reach Rs 3 trillion over the next decade. With the aim of creating 500,000 direct and 1 million indirect jobs in the IT sector, the upcoming year will be declared as the launch year of the IT sector.

President Poddar expressed his belief that the government has given special priority to the IT sector by setting this ambitious goal. He said that partnership with the private sector is the key to achieving this goal, so the government should play a role in strengthening the industry by introducing more programmes.

According to the CAN Federation, the plan to operate an IT Park with infrastructure such as internet, electricity, security and other available government and private buildings in Kathmandu Valley and Butwal and to provide free installation of workstations for three years for IT companies is positive. It is believed that startups and entrepreneurs who have worked on the latest technology and solutions will benefit if this campaign is implemented across provinces.

Similarly, a plan has been introduced to build structures to operate a state-of-the-art IT hub in Kathmandu on a public-private partnership (PPP) model.

CAN Federation General Secretary Chiranjibi Adhikari expressed his happiness that the IT sector has been given priority over the past. He expressed enthusiasm that the government has given priority to data protection and cybersecurity.

"The plan to give dividend tax in the IT sector is also positive. Similarly, the concept of a startup fund and startup board will encourage new entrepreneurs in the IT sector," he said. "The government's plan to emphasise IT-based entrepreneurship is good. 

Access to IT in the public sector, digital currency, IT-based knowledge park among others are also included in the budget. Likewise, the CAN Federation has mentioned that the government's plan to promote software made by domestic companies is commendable.

He said that partnership with the private sector, including CAN, will be important for the plan to arrange internships in companies for IT students.

"If the private sector is actively involved in the implementation, most of the plans will be completed easily and quickly," he said.

Adhikari said that if the announcement of giving fellowships to young people in IT, and educational loans as a concession for students who want to study technical subjects is implemented, there will be more excitement in this IT field.

CAN Federation President Poddar opined that although the budget allocated to implement the Digital Nepal Framework is small, if a committee is formed for the implementation of the plan, many results can be obtained.

However, Poddar expressed his displeasure over the imposition of 5% excise duty on laptops while bringing a positive programme in IT. Excise duty levied on goods in the negative list considered injurious to human health has been levied on laptops and notebooks. "Why was excise duty imposed on a device which is indispensable for the development of IT? We draw the government's attention to this," he said.