The Confederation of Nepalese Industries (CNI) has urged the government to increase the individual income tax exemption threshold to at least Rs 1 million in the upcoming national budget.
Submitting its recommendations to Finance Minister Swarnim Wagle on Sunday, the organization emphasized the need for lower tax rates, the implementation of a risk-based financial audit system, and the removal of double taxation in various sectors.
CNI also proposed maintaining a two-tier customs duty difference between raw materials and finished goods in order to support domestic industries. In addition, the confederation recommended providing import tax exemptions to industries that utilize at least 40 percent locally sourced raw materials.
The private sector body further called on the government to ensure long-term policy stability by avoiding changes to industrial policies for at least 10 years. According to CNI, consistent policies would encourage investors to make long-term plans and help create a more favorable environment for industrial growth and economic expansion in Nepal.
