Nepal Foreign Trade Association positive about Budget for FY 2023/24

KATHMANDU: Nepal Foreign Trade Association (NAFTA) has said the government's announcement to increase the morale of the private sector, the incentive policy for startups including venture capital, mutual fund and the plan for digitisation and e-bidding of the government sector is positive. Commenting on the government's budget for fiscal year 2023/24 presented by Finance Minister Prakash Sharan Mahat at the Federal Parliament, NFTA said the allocation of budget for research and development, making a commitment to developing industrial sector in public-private partnerships (PPP) model, and the announcement to implement a system for registering companies at zero cost and increasing capital without charging any fees are also positive aspects. Further, the internationally represented organisation for trade expansion in Nepal has taken the government's announcement to ensure foreign investors' returns and facilitate the process of granting them visas easily. Foreign investors will not need approval to reinvest their profits. The arrangements such as updating the investment portal, promoting e-commerce in exports, modernising the agricultural sector including contract farming, and opening the export of sands and stones will bring positive results in the economy, the association said in a statement. Likewise, the announcement to build a new dry port in Kanchanpur, the commitment to give 50% income tax rebate on software exports, and to allow the private sector to trade in energy have also been taken as positive aspects of the budget. Similarly, the announcement of VAT refunds for foreign projects that purchase goods from Nepal, VAT refunds every four months for companies/firms with a turnover of up to 10 million, facility to submit documents to the customs office online, and plan to improve customs laboratory will have a positive impact on the economy, NAFTA said.