The fresh amendment to the draft constitution has addressed some of the concerns of the private sector.

One of the pressing concerns of the private sector in the initial draft was a provision that ensured participation of workers in the management of business enterprises. In the latest revision, the three big parties—Nepali Congress, CPN (UML) and UCPN (Maoist)—have replaced the provision of “ensuring participation of workers” with “encouraging participation of workers” in the management.

Business bodies like the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) had protested the provision, stating as investors take risk, the workers could not be involved in the management and such a provision would discourage investment.

The private sector was enraged after their concerns were not addressed in the first amendment to the draft, but it is somewhat happy now.

FNCCI President Pashupati Murarka said the latest amendment was a step in the positive direction. “The the provision of ensuring workers’ participation in management was our one of the biggest concerns and it has been addressed,” he said.

Nepal Chamber of Commerce President Rajesh Kaji Shrestha too termed the revision “positive”, but said encouraging the participation of workers in the management “is still a bad idea”.

The latest amendment to the draft statute has excluded excise duty and remuneration tax from the jurisdiction of provinces, bringing them under central government.

The private sector had been demanding that major revenue sources such as customs duty, value added tax (VAT), income tax and excise duty be brought under the central government’s purview.

Excise duty was included under both central and provincial governments in the initial draft. “We had protested because of the possibility of dual tax liability.”

However, the revision has not removed  the provision of “leading the nation to the socialist economic system” and did not changed the

definition of “labour rights” as “fundamental rights”.

Article 34 of the draft constitution states every labourer shall have the right to proper work practices; every labourer shall have the right to appropriate remuneration, facilities and social security; every labourer shall have the right to form a trade union, participate in it and organise collective bargaining.  

The private sector has been insisting workers’ rights can be ensured through an Act instead of defining them as fundamental rights. The business community is fearful it could give the workers right to file cases which could complicate things. Murarka said they were not much worried after the latest amendment and that they would accept the revision despite reservations over some points.

With the Nepal Rastra Bank (NRB) and bankers complaining about the inclusion of financial institutions under provinces in the initial draft, the fresh amendment has provisioned the operation of financial institutions in provinces would be based on the NRB policy.

Major changes

-     Provision of ‘ensuring participation of workers in management’ replaced with ‘encouraging participation of workers in management’

-    Excise duty and remuneration tax brought under central government

-    Definition of “labour rights” as “fundamental rights” continued

-    Provision of socialist economic system continued

-    NRB given right to decide on FIs to be operated in provinces