The private sector has stated that setting a cash transaction limit of Rs. 500,000 from Magh 1 has created problems for business activities. At a program organized here today on the occasion of International Customs Day, umbrella organizations of the private sector demanded that the cash transaction limit be increased.
Speaking at the event, which was also attended by Finance Minister Rameshwar Prasad Khanal, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal and Nepal Chamber of Commerce President Kamlesh Kumar Agrawal said that the provision requiring transactions above Rs. 500,000 to be conducted only through the banking system needs to be revised.
FNCCI President Dhakal said that the rule allowing cash transactions only up to Rs. 500,000 has caused difficulties for businesses, as banking access and usage have not yet reached all parts of the country. He added that the limit may have been imposed due to international pressure on the government and the central bank because Nepal remains on the “grey list” related to anti–money laundering concerns.
Dhakal also expressed the view that this is the right time to amend economic policies to make the investment environment more conducive and to promote the private sector. He stressed that instead of prioritizing customs revenue alone, the government should move forward with policies that promote domestic industries, businesses, and entrepreneurship. He also noted that the hotel and tourism sector has not received state facilities on par with other industries.
Similarly, Nepal Chamber of Commerce President Kamlesh Kumar Agrawal said that customs administration is a crucial sector for the national economy and trade facilitation, and emphasized the need to ensure sound economic governance. He criticized the existing penalty and fine provisions in the Customs Act as being harsh and impractical.
Agrawal also highlighted the need for a multi-rate value-added tax (VAT) system and said that customs facilitation should be provided for goods brought into Nepal for wedding-related events in order to develop the country as an attractive wedding destination. He reiterated that the requirement to conduct transactions above Rs. 500,000 only through the banking system has created difficulties for businesses.
At the program, Customs Agents Association President Prachin Kumar Thaiva stressed the importance of developing a transparent and technology-friendly customs system to control illegal trade, promote economic growth, increase revenue collection, and facilitate foreign trade.
