March 27: The Birgunj Chamber of Commerce and Industry (BICCI) has demanded the government to formulate several policies to help resolve the problems faced by the private sector. The chamber has urged the government to lower the interest rates to single digit, and has also sought income tax exemption, proper management of bank loans in addition to the introduction of credit act. 

The BICCI delegation was in Kathmandu for a visit last week. The delegation met Prime Minister Sher Bahadur Deuba, Home Minister Bal Krishna Khand, Finance Minister Janardan Sharma, Health and Population Minister Birodh Khatiwada, secretary at the Ministry of Industry, Commerce and Supplies Dr Ganesh Prasad Pandey, Inspector General of Nepal Police Shailesh Thapa Chhetri, Inspector General of Armed Police Force Shailendra Khanal, Nepal Rastra Bank Governor Maha Prasad Adhikari, Director General of the Department of Customs Kamal Prasad Poudel, Director General of the Department of Revenue Investigation Prakash Poudel and Director General of Inland Revenue Department Ritesh Man Shakya and put forward their demand. 

Organising a press conference in Kathmandu on Friday, BICCI president Dr Subodh Kumar Gupta said that the problems of the private sector have been brought to the notice of the government bodies. 

During their meeting with Prime Minister Deuba, the chamber demanded to establish a new industrial zone. They also demanded the establishment of industrial security force. They urged home minister Bal Krishna Khand to hold regular border security meetings. The delegation members said that the government should be sensitive in this regard as the industrial sector has also been affected by the criminal activities taking place from across the border. 

In a meeting with Finance Minister Janardan Sharma, they demanded tax exemption on income of up to Rs 800,000 for a single person and up to Rs 850,000 for a couple.

The delegation also insisted that there should be a difference of 15 percent in the customs duty for finished goods and industrial raw materials, and the tariff on import of pulses should be revised according to the present time. 

The private sector stakeholders also urged the government to fix the rent of the Special Economic Zone at Rs 5 per square feet. The chamber also said that the provision of 60 percent export for industries operating in the SEZ should be reduced to 25 percent. Likewise, they have also demanded reduction of interest rates on concessional loans and refinancing.  

In addition, the chamber has also demanded the introduction of a credit act. The delegation also demanded 50 percent exemption in income tax for industries related to basic essentials and education.