FNCCI to ask government to raise VAT threshold

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has decided to ask the government to raise the value added tax (VAT) registration threshold. Currently, companies having annual transactions of up to Rs 2 million are not required to register for VAT.

Similarly, the FNCCI has decided to ask the government to extend the deadline for enterprises based in newly declared municipalities to register for PAN and VAT.

The government has asked companies in the new municipalities to obtain PAN and VAT registration by the middle of January.

The FNCCI’s fifth executive committee meeting held on Tuesday has also decided to mount pressure on the government to implement its pledge that government agencies would buy domestic products even if they were dearer by up to 15 percent.

The meeting led by FNCCI President Pradeep Jung Pandey was attended by 85 percent of the working committee members, the FNCCI said in a press statement.

This is the first time that two warring factions at the FNCCI have come together to hold discussions. Earlier, the rebel faction led by Vice-President Pashupati Murarka had boycotted the meeting questioning the credibility of President Pandey who had faced criminal charges.

Meanwhile, the FNCCI has shown serious concern over the obstructions to the maintenance of the transmission towers of the Bhotekoshi Hydropower Project.

The towers were damaged by floods in August. Although maintenance has started, party cadres have prevented work from being done demanding shares in the project for locals.

Source: eKantipur