Print Edition - 2016-10-03 | MONEY
Private sector body hails Industrial Enterprise Act
Oct 3, 2016-
The Federation of Nepalese Chambers of Commerce and Industries (FNCCI) has hailed the newly-endorsed Industrial Enterprise Act, stating the “no work, no pay” provision incorporated in the law has created positive vibes in the business community.
Addressing a press meet here on Sunday, FNCCI President Pashupati Murarka said the new Act would help create a business-friendly environment and provide stability to the private sector.
The President is yet to sign the bill into law.
According to the private sector’s apex body, the Act has reinstated a majority of the facilities that were cut by the Income Tax Act 2002.
“We had long been demanding to insert a number of provisions in the Act to address the business community’s grievance. Although late, the Act has been endorsed,” he said. “The private sector welcomes the new law, which will help in the industrialisation of the country.”
The private sector is particularly pleased with the “no work no pay” scheme as businesses had been frustrated with the tradition of employees halting production in the name of protests and then demanding wages for the period when they did not work.
With the endorsement of the Act, industrialists are not liable to make such payments. “In fact, this provision will promote ‘more work, more pay’ regime,” said Murarka.
The provision, however, will not have a legal base if the new labour law fails to embrace it. This is because the Labour Act, which deals with all kinds of work-related issues, will supersede the Industrial Enterprises Act.
“Labour Bill, which is currently being reviewed by lawmakers, has categorised strikes into two categories—lawful and unlawful,” said FNCCI Vice-president Shekhar Golchha. “The bill has provisioned payment of 50 percent of the wage to the workers in the case of lawful strike, but the employers do not have to pay a penny in the case of unlawful strike.”
The new Act has also given income tax exemption for up to five years to hotels,
resorts and other businesses related to tourism established in the places other than
metropolitan and sub-metropolitan cities.
This provision, according to FNCCI, will be helpful in expansion and promotion of the tourism industry.
The business community also welcomed relaxations on Environmental Impact Assessment (EIA) to be carried out by new industries before registration. “According to the Act, business firms can do such assessment after the industry is established and the operation is started,” said Murarka.
However, the new Act will be beneficial only if the government ensures its effective implementation. “We urge the government to be serious for the effective implementation of the Act,” said Murarka.
Published: 03-10-2016 08:28