Print Edition - 2014-06-26 | MONEY
Govt ready to create investment-friendly environment: Mahat
Jun 25, 2014-
Finance Minister Ram Sharan Mahat has said the government will introduce policies making it mandatory for government agencies to purchase the domestic goods even if they are expensive by 10 percent.
The Public Procurement Regulation has also made a provision that government agencies could purchase domestic goods even when they are expensive, but has not made it compulsory.
The minister said the manufacturing sector would not grow until their products are consumed domestically. “The government is firm on endorsing and implementing this policy,” said Mahat at the inauguration of 60th annual general meeting of Merchant Association of Morang in Biratnagar on Wednesday.
The Finance Minister said the government was ready to create industry-friendly environment in which industries would flourish. “The main focus of the next budget will be on increasing private sector investment and its efficiency,” he said.
Stating that the country was able to achieve 8 percent economic growth in the 1990s when economic reforms measures were taken, he said the growth rate can also be achieved now if investment grows.
The upcoming budget will also give priority to the installation of Special Economic Zones (SEZs). “The government has planned to facilitate exports by waiving taxes to factories inside the zones,” he said.
According to Mahat, the government has also planned to minimise the power shortage by promoting solar power. “In urban areas like Kathmandu and Biratnagar, we can save 4kw electricity in each household if we use solar power,” he said, urging the private sector to use solar power as an alternative energy source.
Minister Mahat warned the government would take strong measures to control tax evasions. Amid mismatch between accounts of value added tax kept by traders and the government, Mahat said such a situation does not come if traders maintain transparent account.
Recently, the government had offered tax facilities to traders having such mismatch problems.
“The government will not give such an exemption in the days to come,” he said.
Published: 26-06-2014 09:12