FNCCI submits recommendations for FY 2025/26 policies and programmes to government

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has presented its recommendations for policies and programmes for upcoming fiscal year 2025/26 to the government. FNCCI President Chandra Prasad Dhakal submitted the proposals to Minister for Industry, Commerce and Supplies, Damodar Bhandari, on Wednesday.

During the meeting, President Dhakal praised the government’s recent legislative amendments, emphasising the need for appropriate regulations and procedures to ensure effective implementation. “The recent amendment to the policy has sent a positive message,” Dhakal stated, “but for its success, regulations must be enforced comprehensively.”

The FNCCI emphasised integrating technology into business processes and proposed creating a unified revenue law to replace annual financial amendments, ensuring policy stability. It also recommended launching an 'Investment in Nepal Campaign' to attract foreign investors, mentioning that foreign investment comprises just 0.2% of GDP in the last two years.

Highlighting banking challenges, FNCCI President Dhakal criticised the Working Capital Loans Guidelines, 2079, as discouraging investment and urged its revision or suspension for at least two years.

“Refinancing facilities should be provided to small and medium enterprises (SMEs) to ensure smoother access to funding,” Dhakal opined. He stressed the importance of remittances and policies to boost tourism and exports. Immediate measures, including infrastructure upgrades at airports, are needed to support exports, especially to Gulf countries, he said.

The FNCCI also proposed tax reductions for manufacturing industries, lowering income tax rates, and piloting a multi-rate VAT system. Dhakal suggested, “A taskforce including the private sector should be formed to prepare for these changes.”

FNCCI, the private sector organisation, continues gathering input from members and engaging with the government to address economic challenges effectively.