REPUBLICA
A preliminary report on summer crops released by Ministry of Agricultural Development (MoAD) on Friday states that production of paddy, which commands more than 50 percent in total cereal production, would increase to 5.05 million tons in 2013/14 from 4.5 million tons of last year. The production is worth Rs 110 billion as per the existing market rate. Paddy production had hit an all time high of 5.07 million tons in 2011/12. Hem Raj Regmi, senior statistician at the MoAD, said sufficient enough rainfall and use of improved seed as well as expansion of plantation area were the major reasons behind rise in paddy production. Agriculture Scientist Bhola Man Singh Basnet said easy availability of chemical fertilizers is the other reason behind growth in paddy production. Total paddy production is estimated to increase by 542,000 tons as plantation area and productivity have increased by 4.7 and 7 percent, respectively. Paddy was cultivated in 1.4 million hectares, up by 66,000 hectares compared to last year. According to MoAD, average price of paddy has increased to Rs 21,670 per ton this year from last year´s Rs 20,830 per ton. Experts say rise in paddy production will increase contribution of paddy to total Gross Domestic Production (GDP) by 0.85 percentage points to 7.95 percent. Economic Keshav Acharya said rise in paddy production by 12 percent will push agriculture growth by 2.49 percentage points provided that other contributing sectors remain unchanged. Statistics of 2012/13 shows agriculture contributes 34 percent in GDP and paddy contributes 7.1 percent in GDP. Basnet said growth in paddy production indicates higher economic growth as economic growth is proportion to paddy production. When paddy production hit record high in 2011/12, national economic grew by 4.6 percent. However, the economy grew by only 3.5 percent when paddy production went down by 11 percent in 2012/13. He further said better crop yields speak of better food security. He, however, urged the government to launch ´paddy mission´ to concentrate on paddy, a major food crop, like in other crops like maize and onion. Despite rise in overall production, paddy production in Saptari, Dhanusha, Mahottari and Sarlahi was affected due to lack of sufficient rainfall in main plantation season. The report shows that 50 districts reported growth in production, while 10 districts said production went down. Similarly, production was unchanged in 15 districts. According to the report, maize production increased by 9.8 percent to 2.2 million tons due to the use of improved seed, favorable weather and expansion of plantation area. Maize plantation area increased by 6 percent to 928,761 hectares and productivity improved by 3.4 percent this year. Likewise, production of buckwheat also posted positive growth by 2.8 percent to 10,335 tons. However, production of millet marginally went down by 0.5 percent to 304,105 tons. |
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Monday, December 30, 2013
Paddy production up 12 percent: Report
Jungle Villa begins full-fledged operation
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REPUBLICA
Established at an investment of Rs 100 million, the resort is targeting both foreign and domestic visitors who want to enjoy jungle safari in a peaceful environment. “Now we can accommodate 50 guests per night,” Ganesh Poudel, managing director of the resort, told Republica. “We can also accommodate more guests in tented camps.” Poudel further informed that the resort was planning to 25 more rooms within a year keeping in view the growing number of guests visiting the resort. Located near the Kasara-based headquarters of Chitwan National Park (CNP), the resort lies around 160 km south-west of Kathmandu. Jungle Villa is sprawled over two hectares of well-managed private forest land on the banks of the Rapti River that adjoins CNP which is home to the endangered one-horned rhinos, Royal Bengal Tiger and other species of flora and fauna. “Our guests can enjoy view of endangered wildlife and rare birds of CNP as well as Ghariyal crocodile in the Rapti River from our specially designed terrace,” claimed Poudel. Jungle Villa organizes different activities like elephant ride, jungle drive, village tour, bird watching, jungle walk and cultural programs performed by indigenous Tharu and Darai communities. The resort also offers tour to Ghariyal breeding center and wildlife museum in CNP headquarters at Kasara. The resort mainly offers two types of packages - one-night, two-day and two-night, three-day, for its visitors. The two-day, three-night package costs US$ 250 per person for foreign visitors and Rs 10,000 for Nepalis. “We also design packages as per the interest of our visitors,” Poudel said, adding that the resort was soon announcing special offer for holidaymakers and winter vacationers. Experienced naturalists and tour guides, who accompany visitors on jungle safari trips, provide detailed information about different species of flora and fauna available in CNP, according to Poudel. The restaurant at Jungle Villa serves Continental, Indian, Chinese and Nepali cuisines prepared by experienced chefs. The resort is also building a well-equipped meeting hall to organize meetings and seminars. In its bid to support local people, the resource has been sourcing chicken, mutton, eggs and vegetables from local farms. “Not only that, more than 75 percent of our 45-member staff are from local indigenous community,” added Poudel. The resort is also involved in different social works. It has been distributing concrete rings to the local people free of cost to collect garbage. “We are also planning to award a local villager who makes remarkable contribution in environment conservation,” he added. |
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Govt to categorize taxpayers
PRABHAKAR GHIMIRE
Tanka Mani Sharma, director general of Inland Revenue Department (IRD), told Republica that process had been initiated to categorize taxpayers into three groups -- large, medium and small -- and make three separate administrative structures for them accordingly. “As our experience shows that all kinds of taxpayers can´t be dealt by a same office, we need to establish separate authority for each category. Only then we will be able to lay special focus on certain group of taxpayers,” added Sharma. The government has categorized taxpayers having annual turnover of more than Rs 400 million as large taxpayers. It has opened Large Taxpayers´ Office (LTO) to oversee them. However, other taxpayers have not been categorized. At present there are around 700 large taxpayers that contribute around 50 percent of total revenue collection. Similarly, around 2,000 firms have been contributing nearly 25 percent of the total revenue. Three districts in the Kathmandu Valley have been collecting more than 75 percent of the total revenue. There are more than 70,000 taxpayers in the Kathmandu Valley and only 5-60 taxpayers are overlooking them because of human resources crunch. “We can increase revenue mobilization by strengthening revenue administration and putting in place stronger investigation mechanism,” said Sharma. The government is pursuing the system of self assessment of tax by taxpayers themselves in a bid to make them more responsible toward their tax liabilities. “Contribution of tax collected through revenue investigation is hardly 4 percent as remaining amount comes from self assessment of tax by taxpayers themselves,” Sharma added. The IRD is also devising measures to make taxpayers more responsible toward their moral duties to support government in mobilizing more revenue. “Though tax payers are investing billions of rupees in different businesses, some of them still lack business ethics,” Sharma said, adding: “We will soon formulate policies that make them more responsible toward the state.” Though taxpayers have been given full authority to collect VAT on behalf of the government, large number of taxpayers has been found misappropriating VAT inflicting huge revenue loss on the state. IRD assesses tax in additional suspected frauds KATHMANDU (REPUBLICA): Since the revelation of high profile VAT and income tax fraud by 518 taxpayers three years ago, the IRD has completed investigation of additional two groups of taxpayers into the suspected tax evasion. According to IRD assessment, Rs 4.16 billion is to be recovered from 377 firms out of the 495 cases under investigation. In other similar investigation, IRD has assessed that tax worth Rs 357.6 million is to be recovered from 263 cases out of a total of 1,533 cases under investigation. “We estimate to recover Rs 3 billion from the total 1,533 cases. The IRD estimates to recover Rs 6.97 billion from 518 cases of revenue evasion that was unearthed some three years ago. |
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Friday, December 27, 2013
Slowing industrial growth amid chronic hurdles
-----Analysis----
PRABHAKAR GHIMIRE
“I was able to cover only one-third of the total land acquired for Ganga Devi Chaudhary Udyog Gram over the last two decades [with industries]. My dream of accommodating multinational companies inside my industrial cluster couldn’t be materialized,” he told a group of media persons recently. Chaudhary, who is also the first and only Nepali “dollar” billionaire in Forbes Magazine’s global list, blames the country’s adverse industrial climate for throwing cold water on this dream. Let alone extra incentives from the government, he has had to struggle to get the necessary land to establish industries in Bardia and Sunsari in the last two years. Surya Nepal – the Nepal subsidiary of Indian conglomerate ITC Limited -- also could not find land to establish its cigarette factory in Tanahu district after two years of trying. The cases of Chaudhary and Surya Nepal are just a tip of the iceberg that has been hindering industrial growth here. Among the piles of obstacles -- both chronic and emerging -- in the course of operating industries, shortage of land tops the investors’ list. Over a few years, Nepal’s industrial slowdown has deepened leading to continued decline in contribution of industries to the national economy. Lingering political transition, deepening shortage of energy, frequent labor unrest, and crunch of skilled manpower are among the elements that most of the business people have attributed the slowing industrial growth to. “We had been able to carry out significant expansion in our industries with firm determination even during the decade-long Maoist insurgency. What we want from the government is a favorable investment climate to win the trust of domestic and foreign investors,” said Chaudhary. Even after the peace accord was signed with the then Maoist rebels in 2005, the industrial environment has yet to be restored enough to revive the ailing industrial sector. Data compiled by the Central Bureau of Statistics (CBS) shows growth of the manufacturing sector limited to 3 percent in 2010, 4.1 percent in 2011, 3.6 percent in 2012 and projected at 1.8 percent for 2013. With the manufacturing sector slowing consistently, its contribution to the Nepal’s gross domestic product (GDP) has been hovering between 6.7 percent and 6.9 percent over the last five years. The overall industrial sector, which has been contributing around 15 percent to GDP for the last few years, has witnessed a declining contribution to the economy. The industrial sector’s growth has been reported at 4.3 percent, 3 percent and 1.6 percent in 2011, 2012 and 2013 respectively. “How can we expect industrial growth in our country where investors can’t get even the required land?” Chaudhary said. Entrepreneurs have been facing similar fate while acquiring land for industries. Difficulty in land acquisition has become a major obstacle for the development of even public infrastructure such as hydropower and highway. Rabi KC, a senior vice-president at Surya Nepal, said scarcity of large plots of land due to increasing cases of land fragmentation, demand for excessive price for land and need for related infrastructure such as water supply, electricity and roads to run the industries, have been discouraging the entrepreneurs from investing in the manufacturing sector. “We have to suffer huge cost for establishing industries as we have to spend large sums of money for land and the necessary infrastructures for industries,” KC said. Development of major infrastructures such as highways, hydropower and transmission lines also have become difficult nuts to crack for the government. Dispute with owners in the process of fixing compensation for land to be acquired has meant that the progress in construction of transmission lines and development of even national priority road and hydropower projects has been negligible. Even local leaders of political parties are found to be instigating the land owner to demand ‘unnatural prices’ for their land. “We can’t guarantee that any industry or hydropower project will run in the area where dispute on compensation is not settled. Insecurity of investment is the major factor that has put a dent on industrial growth over the last few years,” said Pashupati Murarka, a vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The government has been facing a crunch for land to establishing Special Economic Zones (SEZs) -- a key facility for industrial promotion -- in different parts of the country. When the government plans to develop such structures, owners continue to bargain demanding exorbitant prices for their land, making the compensation cost excessively high beyond the affordability. “The trend of demanding unreasonably high prices for land has hampered the development of infrastructures and industries. The problems in land acquisition have stalled implementation of development projects even though we announced the budget in time this year,” Ram Saran Pudasaini, joint-secretary at the Ministry of Finance (MoF), said. The government formulated the Industrial Policy 2010 with a host of measures to promote industries including establishment of SEZs which will be equipped with the necessary industrial infrastructures and amenities. In a bid to avoid land acquisition problems, infrastructure deficit and labor unrest, the government announced it would bring an SEZ being constructed in Bhairawa into operation this year. However, the policy could not be implemented in line with its spirit due to delay in formulating necessary laws. The Industrial Enterprises Act and SEZ Act, which is crucial for the development of the industrial sector, is gathering dust in the absence of parliament. The current budget has also pledged to start developing the necessary infrastructure once the land acquisition for the proposed SEZs in Panchkhal and Biratnagar were completed. The government is also developing infrastructure for the proposed Simara SEZ. Though the SEZ in Bhairawa is almost complete, it could not be brought into operation amid delay in getting the necessary act. In the budget, the government announced it would formulate a new Industrial Enterprises Act and make the necessary amendments in the existing Company Act and Foreign Investment and Technology Transfer Act. The Approach Paper of 13th Plan released by the government for the next three years also pledged to support entrepreneurs in increasing their access to resources and arrange energy as well as other necessary infrastructure. Dr Charanjibi Nepal, the Chief Economic Advisor at the MoF, holds a different view on the slowing industrial growth. Nepal identified that lack of policy consistency and political instability in the country led to the sluggish growth of the industrial sector. “Unless political stability and policy consistency are established, we cannot get a favorable investment climate for better industrial performance even if we provide other facilities for industries,” Nepal said. He said a simplification in the process of acquiring land, flexible labor laws, access to energy and industrial infrastructures are factors that need to be addressed for industrial promotion. “We have low productivity and comparatively higher industrial wages in South Asia and the labor laws are also rigid. And, infrastructure deficit and energy crisis are also worsening the situation leading to a higher cost for doing business in the country,” added Nepal. A new Labor Act expected to resolve various problems in labor relations is yet to be finalized even though the process has been going on for the last few years with a host of tripartite meetings between the government, employers and trade union leaders. |
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Monday, December 23, 2013
India opens two new routes for overseas trade
Nepal-India IGC meeting (Dec 21-22)
REPUBLICA
Secretary of Commerce and Supplies Madhav Regmi and his Indian counterpart S R Rao inked the agreement at the end of the meeting. Most of the points agreed are crucial for promoting Nepal´s international trade, including with India -- the largest trading partner -- at a time when Nepal has been suffering an ever-increasing trade deficit. "The meeting was quite constructive in balancing the trade between the two countries. We discussed extensively on increasing trade in goods and services as well as boosting bi-lateral investment," Rao told the media after the meeting. Rao also expressed readiness to extend any possible support including technical to Nepal to enhance Nepal´s international trade. "We are ready to support [Nepal] in boosting trade not only with India but other countries by easing supply constraints of Nepal," said Rao. He also suggested to Nepal to increase domestic manufacturing and promote hydropower to push the export volume to bring down the trade deficit. Nepali commerce secretary Regmi also said the trade officials of both the sides have been successful in thrashing out the longstanding trade issues and pave the way for increased trade in favor of both the neighbors. The two-day Inter-governmental Committee (IGC) meeting was held after a two-year gap since the last bi-lateral talks held in New Delhi in December 2011. Upon the request by Nepali officials, the Indian side has agreed to open the Jagbani-Biratnagar and Sunauli-Nautanawa-Bhairawa routes for Nepal´s third country trade. Currently, Nepal has been allowed to use only Raxual-Birgunj route for overseas trade. Similarly, Indian officials also agreed to allow Nepal to bring imported vehicles ´on their own power´ from the Kolkata port and continue the existing provision of using only wagons or containers to transport such vehicles to Nepal. A press statement issued at a press conference stated that the Indian side also agreed to allow export of third country goods [which are imported for different purposes to Nepal] through the Indian territory. Until now, different goods and equipment brought to Nepal for various purposes including for trade fairs and development projects cannot be sent back to the countries of origin due to a provision in the existing Nepal-India Transit Treaty. In the meeting, Nepali side has agreed to waive the five percent Agriculture Reform Fee (ARF) on the imports of Indian farm products at the time Nepal finds suitable. Nepali officials were also able to convince the Indian delegation for continuing the existing customs duty on the import of Indian cement and clinkers stating that any reduction on customs duty will affect the Nepali cement industry. Similarly, both the sides have also agreed to remove difficulties in quarantine certification of exportable goods from both the countries, and activate additional customs points by upgrading the customs infrastructure. At Nepal´s request, India has also agreed to allow Nepali traders to import ´milch cattle breed with proven sire index´. In a bid to simplify, economize and make comfortable the trans-shipment of third country cargoes to Nepali border via Kolkata, both sides also agreed to develop an appropriate modality. The meeting also decided to take initiative to speed up the process to implement the past agreements. Similarly, responding to the request from Nepali side, Indian officials also agreed to resolve the problems in exporting Nepali books and newspapers to the southern neighbor. In the meeting officials of both the countries have introduced the agenda of investment promotion and concerns of private sector in an effort to boost bi-lateral trade. |
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Sunday, December 22, 2013
IGC meet begins, India 'ready to review' trade treaty
REPUBLICA
Speaking at the inaugural session of Inter-Governmental Committee (ICG) meeting on Saturday, Rao said, “We will have no hesitation at all for a new agreement to make trade easier in the changed context of global trade and advent of new technology.” Addressing the inaugural session of secretarial-level talk, Rao also said that they are open to discuss the pending issues related to trade, transit and tariff issues. Rao was responding to Commerce Secretary Madhav Prasad Regmi, who had highlighted some concerns of Nepal regarding passage/transit of cargo carrying non-Nepalese origin goods via Kolkata to the third countries. He also raised the issues and concerns of movement of vehicle ´on-is-own-power´, counter veiling duty and Nepalese readymade garments and some other issues on non-tariff and para -tariff including quarantine, food testing, mutual reorganization of certification of lab are to be addressed. Officials involved in the talks said that they had deliberations on trade issues of almost all the agendas in the first day meeting on Saturday. Both the countries have reached close to an agreement for gradual reduction of customs on medicines. Regarding Nepal´s proposal to seek unhindered export of books and related materials to India, India is positive, according to an official involved in the negotiation. Both the countries have agreed to discuss transit issues during separate bilateral talks on railways scheduled to be held in June next year. India has said that Nepal can decide on its customs as per its convenience when it comes to agricultural products, besides allopathic and herbal medicines. Indian delegates have also proposed discussion on investment partnership issues in the ICG talks, which was traditionally limited only to trade issues. Nepal has also sought the facility to bring vehicles imported from the third country from Kolkata port by driving instead in containers as it would bring the shipment charge down. Likewise, Nepal´s demand also includes permission to return the third country goods via India. There were also discussions on permitting Nepal to use Bishakhapatnam port, opening Rohalpur-Singhabad railways for the third country import and export. However, minutes of the decisions of IJC will be signed tomorrow. |
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Quality media education for quality information'
Speaking at a deliberative seminar on 'Information for the nation building: quality media education for quality information' organised by Kantipur City College (KCC) on the occasion of MAMCJ programme's 10th anniversary on Saturday, they said media education is more relevant at present as the media entrepreneurship and news media are expanding day by day.
On the occasion, panel discussions were conducted on three different topics- Relevancy of media education for media entrepreneurship and media houses: needs for nation, Role of media-disseminated information in institutionalising changes and Information for nation-building: Role of mass communication and journalism graduates.
Discussants in the panels were Federation of Nepalese Journalists (FNJ) chairman Shiva Gaule, chairman of Kamana Prakashan Samuha Pushkar Lal Shrestha, Media Academy chairman Ghama Raj Luitel, Nepal Press Institute (NPI) director Chiranjibi Khanal, Sancharika Samuha president Babita Basnet, chief editor of RSS Shreeram Singh Basnet and Journalism department chief of RR College Prabal Raj Pokhrel among other.
On the occasion, vice chancellor of Purbanchal University Prof. Dr. Maheshwor Man Shrestha awarded mass communication graduates Sachi Ghimire, Bigyan Sharma, Umakanta Bhurtel, Prabhakar Ghimire and Geeta Neupane with MAMCJ toppers award.
Similarly, KCC Schools of Humanities and Social Science chair Rama Krishna Regmi was also felicitated.
Meanwhile, KCC has announced journalism award to be given to the two working journalists comprising a purse of Rs. 25,000 cash each from this year. The journalists will be selected by an independent panel based on certain criteria, said principal Pralhad Karki. nepalnews.com
Friday, December 20, 2013
Lots of agenda, a dearth in implementation
PRABHAKAR GHIMIRE
KATHMANDU, Dec 19: Nepal recently completed election to the Constituent Assembly (CA) and India is preparing to hold a parliamentary election early next year -- a political situation that is bringing together trade officials of both neighbors to the negotiating table within a couple of days. The Inter-governmental Committee (IGC) -- commerce secretary-level meeting, which is going to be held in Kathmandu from Saturday to Monday after a gap of two years, is crucial for the promotion of bi-lateral trade. With Nepal suffering from a ballooning trade deficit, especially with India -- Asia’s third largest economy -- trade officials of the both countries are holding a discussion on around three dozen issues including trade facilitation, control of unauthorized trade, dispute resolution measures, and other trade related issues. “We have set agendas in consultation with Indian officials by incorporating long-running as well as emerging issues which are crucial to facilitate Nepal’s trade with India and overseas countries and bring down the surging trade deficit of our country,” a high-level source at the Ministry of Foreign Affairs told Republica. However, most of the issues agreed on earlier are still to see implementation from both sides. Nepal’s trade deficit increased by 6.3 percent, to touch Rs 180 billion, in first the four months of the current fiscal year. Bilateral trade has been skewing toward India -- the largest trade partner covering two-third of Nepal’s trade -- due to a weak supply capacity compared to import volume. Nepal imported goods worth Rs 137.87 billion from India while its export to South Asia’s largest economy was limited to Rs 18.85 billion during the review period. Dibakar Golchha, who is knowledgeable on Nepal-India trade issues, said Nepali officials should seek Indian support on facilitating the entry of Nepali goods to overseas and Indian markets. “Nepal should request India to remove quantitative restriction on export of Nepali vegetable ghee, copper wire, zinc products and pharmaceutical goods, and review the flawed formula of determining value addition level for Nepali exportable goods,” said Golchha, a former vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Under the transit facilitation measures, both sides will discuss amending the existing Nepal-India Treaty of Transit to replace the current provision of mandatory transportation of imported vehicles by containers by introducing a new provision of on-its-own-power system. Nepali traders complain that India has been enforcing the provision of compulsory transportation of vehicles which, according to traders, has increased their transport costs by five fold. The Nepali side is also proposing amendment of the treaty that has barred export of goods imported from third countries via Indian transit route. Restriction on outflow of overseas goods through Indian ports has created difficulty in repatriating such goods mainly imported for trade fairs and different projects. In a bid to pave the way for Nepal to use alternative routes for international trade, officials will discuss opening up additional routes for bulk operationalizing multimodal transport link in Kolkata-Jogbani-Biratnagar, and Kolkata-Nautanawa-Sunauli-Bhairawa routes. Officials from both sides will discuss the implementation process for trans-shipment of Nepal-bound third country cargos via Kolkata, a system which will allow transportation of goods directly to the Nepali border without going through port and customs-related hassles in Indian ports. Amid a prolonging process of renewal of the bi-lateral Railway Service Agreement (RSA), the IGC meeting will see discussions on expediting the process for clearance of Letter of Exchanges (LoEs) for bringing into operation the already existing five railway routes that Nepal can use for trade with other countries, including Bangladesh. Delay in giving approvals on LOEs from the government of both countries has put the RSA renewal in limbo. So, the Nepali team is proposing introducing a system of automatic renewal of RSA. Putting forth a condition for imposing a system of additional lock on Nepal-bound containers carrying overseas imports, India has been denying renewing RSA with new provisions which, among others, includes operationalizing Vishakhapatnam port as an alternative to the Kolkata port where Nepali traders have been facing a host of procedural problems in clearing goods. However, Nepal has not accepted the additional lock in Vishakhapatnum, though such a system was put in place by India in Kolkata unilaterally a couple of years back. Just as in previous meetings, both sides will seek ways to minimize cross-border unauthorized trade by activating respective customs and security agencies. On the back of growing complaints from Nepali traders against frequent imposition of Counter-veiling Duty (CVD) on Nepali export by Indian states, Nepali officials will ask India to revenue the duty that ranges from 6 percent to 12 percent depending on products. Such additional duty has increased the price of Nepali products, weakening their competitive power with the southern neighbor. “Upholding the spirit of the bi-lateral trade treaty, India has to remove CVD for Nepali products as this facility has already provided to goods from Bangladesh and Bhutan,” Golchha said. During the talks, the Nepali side will also seek settlement of outstanding dues to be received by the Nepali government from Indian authorities under the Duty Refund Procedure (DRP). Though India agreed to scrap DRP in 2011 in line with the Nepal-India Trade Treaty signed in 2009, Nepal has yet to recover outstanding DRP dues. Nepali traders had long been opposing DRP, stating that it is a time-consuming process of claiming back the amount that the Indian government charges on imports from India as central excise duty. Under the DRP system, the amount paid by Nepali importers as central excise duty to the Indian government used to be deducted from the import duty that they were required to pay to the Nepali government. The Nepal government later used to claim the deducted amount back from India. Indian officials are also seeking removal of non-tariff barriers from Nepal for Indian ayurvedic and pharmaceutical products and reduction of customs duty on cement and clinker from India. Mutual recognition of quality certificate issued by the designated authorities of both the countries, removal of customs duty for Indian cement and clinker and abolition of agriculture reform fee on import of primary farm products from India are also among the agendas to be discussed under trade facilitation measures. Keeping in view the long-running dispute over dues to be paid by both Indian and Nepali companies to their respective governments, the meeting is expected to set out measures to resolve the problem in an amicable fashion. Under the trade-related issues under discussion at the meeting, trade officials will also discuss ways to allow circulation of Rs 500 and Rs 1,000-denomination of Indian notes, minimizing the chances of circulation of counterfeit notes. In a bid to facilitate Nepali traders, who have been facing non-tariff barriers in exporting farm goods, the Nepali negotiators will ask the Indian side to simplify the process to allow the entry of such products -- mainly perishable – into the Indian market. Issues of trade in energy -- especially construction of transmission lines and trading of electricity -- and improvement of trading facilities across the border are also incorporated into the agenda. Nepali officials will ask the Indian authorities to speed up the process of completing Integrated Check Post (ICP) in Birgunj and the temporary use of ICP Jogbani facility by Nepali authorities until ICP Biratngar becomes operational. Both sides will also discuss the modalities of traffic to be diverted through ICPs at Raxual and Jogbeni so that smooth movement of goods will be facilitated in the coming days. Besides, development of the proposed ICPs at Sunauli and Rupaidiha of India for bi-lateral trade purposes is also on the agenda. During the meeting, the Nepali side will discuss with Indian officials ways to facilitate the Nepali private sector to import petroleum products, import of hybrid cows to increase the supply in the domestic market that has been witnessing a widening deficit of fresh milk, operationalization of additional customs points, and restoration of margin of preference on import duty for Indian goods. Besides trade issues, both countries are also discussing promotion of Indian investment in Nepal. Given the nominal progress in increasing investment in Nepal through Bi-lateral Investment Promotion and Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) with India, the Indian envoy to Nepal Ranjit Rae is also for introducing investment agenda in the trade negotiations. Around Rs 40 billion worth of Indian investment has entered Nepal so far. |
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Tuesday, December 17, 2013
FDI commitment nearly doubles in first 4 months of current fiscal year
REPUBLICA
According to the Department of Industry (DoI), some 98 interested foreign investors have registered themselves at the department during the period and their total commitment comes to the tune of Rs 10.88 billion. This is likely to create employment for 4,470 Nepali citizens. During the same period last fiscal year, the total FDI commitment, made by 11 foreign investors, stood at just Rs 5.50 billion. Energy has become the most attractive sector for the FDI with investors pledging investment worth Rs 5.35 billion in the first four months of the current fiscal year, up from only Rs 2.10 billion in the same period last year. It may be noted here that a single Indian investor has pledged around Rs 5 billion to develop a hydropower project of 44 MW capacity in Kaski district. Likewise, foreign investors have pledged Rs 2.29 billion in the service sector, up from Rs 1.95 billion last year. Agriculture and Forest sectors, too, have received a FDI pledge in the first four months of the current fiscal year - altogether Rs 581 million. The pledge was only Rs 207 million during the corresponding period last year. Likewise, foreign investors registered with the DoI during this period for investment in mining and similar industries and tourism sector have committed Rs 281 million and Rs 568 million, respectively. The FDI pledged on these sectors during the corresponding period last year was only Rs 96 million and Rs 556 million, respectively. However, the FDI commitments for the manufacturing sector have declined to Rs 539 million from Rs 598 million during the first four months of the last fiscal year. Director at Foreign Direct Investment Section of the DoI, Bipin Rajbhandari, said that overall FDI commitment has increased in the first four month mainly due to the pledge for a hydel project in Kaski as there was no any such project registered during the corresponding period last year. FDI commitment had increased by 179 percent in the last fiscal year, to Rs 19.39 billion, as compared to the previous fiscal year. The trend shows the FDI commitment is on the rise over the past few years. However, the real FDI injection to the economy is quite lower than the commitment, according to Nepal Rastra Bank statistics. Critics say red tape, lack of investor friendly laws, energy crisis and lack of infrastructures are some of the major stumbling blocks for the foreign investors. Economist Bishamber Pyakurel said that FDI commitments are increasing significantly as such commitments, which only hovered around Rs 1 to 9 billion in the eight years up tp the fiscal year 2011/12, surged to Rs 19 billion in the previous fiscal year. “However, the contributions of FDI commitments are not visible in terms of financial stability, growth rate, downsizing trade deficit and employment generation,” added Pyakurel. He urged the government to set priorities and seek FDIs accordingly in the sectors where Nepal has strengths and adopt demand-based approach while inviting investors, rather than devising a supply-based approach. |
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Hearing of revenue fraud cases come to a standstill at RT
REPUBLICA
Tax payers who have been implicated with VAT evasion in around 250 cases have appealed at the RT, challenging the decision of the Inland Revenue Department (IRD). Likewise, the tribunal is currently reviewing around 1,350 cases of VAT evasions. As per the existing rules, those who are not satisfied with the verdicts of the IRD can appeal at the RT. In its verdict, the IRD assesses the penalty and tax to be recovered from the alleged fraudulent tax payers. The RT has so far given verdicts on only 12 such cases. A tax payer, who has appealed at RT seeking review on IRD´s decision, said that the process of setting dates for hearing, has come to a virtual halt as most of plaintiffs have got the dates for hearing of the cases postponed. “Hearing of most of the cases has been postponed upon the request of plaintiff tax payers whose cases are sub-judice at RT,” said another taxpayer, who is appealing against a IRD´s verdict. He said plaintiffs have been requesting for the postponement of the hearing in the hope that upcoming government will make decision to exempt some of their tax liabilities. “If cases are finalized now, we have to clear the dues as per the verdict. So, most of the taxpayers are in favor of prolonging the hearings at least until the formation of next government,” said the source. “For the past few weeks we have not conducted any hearing. But, we don´t know the exact reason behind it,” Hari Shankar Gyawali, a legal advisor for IRD told Republica on Monday. |
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Taskforce On Cards To Draft Strategy For Financial Sector Development
REPUBLICA
A meeting of the High-level Financial Management Committee held on Tuesday at the Ministry of Finance (MoF) also decided to give the taskforce until mid-April to finalize the draft. Quality development of financial sector has not been attained as expected due to rapid growth of this sector and the lack of government´s long-term plans for it. The strategy will work as a guiding tool for the government for at least one decade. A steering committee chaired by the finance minister will oversee different technical committees and sub-committees to complete the task. The taskforce will give a final touch to the draft after incorporating inputs drawn from stakeholders from seminar, studies and interactions organized across the country. The technical committee of the taskforce comprises of the Governor and a deputy governor of Nepal Rastra Bank (NRB), a joint secretary at the Ministry of Finance, chairman of Insurance Board, and chairman of Securities Board of Nepal as members and a director of NRB as the member secretary. Speaking at the meeting, Finance Minister Shankar Prasad Koirala expressed hope that the strategy will be a milestone for the management of financial institutions, capital market and insurance sector. The strategy is aimed at devising measures to lead the financial sector for next ten years. Stating that the strategy will be instrumental in formulating budget for financial sector development, Koirala urged the concerned officials to effectively implement the programs announced in the budget for this sector. In the current budget, the government has incorporated different programs to support development of financial sector. The budget has envisaged maintaining financial stability and enhancing people´s access to financial services. Similarly, the programs also are expected to support for rapid economic growth and overall development of capital market and financial sector by attaining quality development of financial sector. |
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Rasuwagadhi customs to be operationalized within a year
PRABHAKAR GHIMIRE
Though China has already developed infrastructures in Jilong which borders Rasuwagadhi, the Nepali customs point lacks even basic facilities. A five-member delegation led by Zhou Hui, deputy director general of Department of Commerce of Tibet Autonomous Region (TAR) of China is in Nepal to hold discussion with Nepali officials on the customs point. The visiting delegation met with high-ranking officials of the Ministry of Commerce and Supplies (MoCS), Department of Customs, Department of Immigration and other concerned officials on Monday to discuss the modality of developing an Inland Container Depot (ICD) in Rasuwagadhi. Jiba Raj Koirala, joint secretary at the MoCS, led the Nepali delegation at the meeting. The team is in Nepal to expedite the development of ICD as per the Nepali request. A technical team of China had visited the proposed construction site two weeks ago. It is expected to submit its report to the Chinese government very soon. “Keeping in view the low volume of trade through the Rasuwagadhi customs, both sides have agreed to operationalize the second largest customs point along the northern border for greater commercial benefits,” a source at the MoCS told Republica. The source further added that the Chinese side wants to develop basic infrastructure at the customs point before starting construction of the proposed dry port. During the meeting, the Chinese delegation sought information about Nepal´s internal preparation to activate the customs point. Responding to the Chinese delegation, the Nepali officials said an under secretary will work as the chief of the customs point. They also said a separate plant quarantine unit will be set up at the customs point. In the budget for current fiscal year, the government has announced to initiate dry ports at Rasuwagadhi customs and Dodhara-Chandani area of Kanchanpur district. The government has also designated Nepal Inter-modal Transport Development Board (NITDB) to provide additional information to Chinese officials about climatic condition, road connectivity, electricity facility, landscape and the prospect of town development near the proposed site. The proposed dry port is to be constructed near the Rasuwagadhi Hydropower Project (111 MW) which is being developed inside the Langtang National Park. Weak trade infrastructures have been blamed as one of the major bottlenecks in Nepal´s trade with China. China had agreed to support Nepal in upgrading four dry ports in major customs points, including Rasuwagadhi, during the Nepal visit of the then Chinese Prime Minister Wen Jiabao in January 2012. Under the agreement on "Management of Ports in the China-Nepal Border", China has agreed to strengthen Pular-Yari, Jilong-Rasuwa, Zangmu-Kodari, and Riwu-Olangchug Gola border crossings. Though Nepal shares half a dozen border passes with the northern neighbor, only Tatopani customs has been utilized effectively for bilateral trade so far. If the Rasuwagadhi dry port plan takes off, it will be the second such infrastructure in northern part of the country. The first dry port in northern part of the country is being constructed at Larcha of Sindhupalchowk with the Chinese support. |
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Monday, December 16, 2013
Republica team historical photo
This historical photo of team members of Nepal Republic Media, was taken just before the formal launching of Republica and Nagarik Daily. 
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