Chairperson of the Confederation of Nepalese Industries (CNI), Birendra Raj Pande, has emphasized that immediate reforms in the country’s tax system are essential, given the economy’s challenging state.
Speaking at the “Public–Private Dialogue on Revenue System Reforms” held in Kathmandu on Wednesday, Pande highlighted that without stability in tax policies, investment growth cannot be achieved.
He noted that although the banking system currently has adequate investable funds, weak market demand has led industries to operate below their capacity. “Interest rates are in single digits, inflation is low, yet money remains idle in banks due to weak demand, which is not a positive signal for the economy,” he said.
Pande further explained that idle funds negatively impact government revenue collection and stressed that tax policy plays a decisive role in encouraging investment. He added that both domestic and foreign investors base their decisions on the stability of tax policies, making policy consistency indispensable.
He also mentioned that the High-Level Economic Reform Advisory Commission, established for economic improvements, has prioritized tax reform, and the Action Plan–2082 underscores the need for amendments in the tax system.
“For expanding investment and creating a robust industrial environment, policy stability is crucial. Therefore, I urge the government to implement tax system reforms as soon as possible,” Pande concluded.
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