They also asked the government to formulate a clear Private Sector Development Policy and special action plan to develop herbs and herbal sector. [break]
The recommendations were made when private sector leaders and government officials on six different sectors met last week to identify sector-specific priorities that can be translated into important reforms that benefit business environment.
Working group on infrastructure development sought full exemption of VAT in civil construction of hydropower projects, singing of Project Development Agreement (PDA) with independent power projects and price adjustment on project cost based on Nepal Rastra Bank Index.
Working group on financial, monetary and insurance affairs recommended regulation of the savings and credit cooperatives and review newly drafted Insurance Act. “It has also pushed for reduction in corporate tax,” reads a press statement of International Finance Corporation (IFC), which is managing the NBF.
Likewise, working group on women entrepreneurship development sought creation of Small and Medium Enterprise (SME) Fund to enhance access to finance and establishment of Women´s Craft Village in Kathmandu.
While working group on business environment, labor relations and industrial security recommended reduction in the number of holidays and reform labor laws, working group on export promotion and trade facilitation pushed for the implementation of SMEs loan and export cash incentives, among others.
The NBF working groups were co-chaired by the Secretary of the concerned Ministry and a representative from Federation of Nepalese Chambers of Commerce and Industry. During the meeting, each working group highlighted a few critical issues which were priorities for their sector.
The objective of this meeting was to identify priority areas which can be focus and support through 18 manageable reforms.
NBF is one of the three project components of Nepal Investment Climate Reform Program that works as a common platform for public-private dialogue. It has a High Level Business Forum chaired by the prime minister.
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