August 28: Bimal Prasad Srivastav, chairman of the Industry and Commerce and Labor and Consumer Welfare Committee of the House of Representatives, recently visited the Galvanized Iron (GI) wire and sanitary pad industries which were closed due to the unfair tax policy adopted by the government. During a discussion programme held after the visit, Srivastav said that he would again instruct the finance minister to correct the discriminatory tax rate.

He also suggested the industrialists to take to the streets if the finance minister ignores the committee directive.

Shrivastav claimed that Finance Minister Janardan Sharma was reappointed by Prime Minister Sher Bahadur Deuba upon the recommendation of the CPN Maoist Centre for personal gains.

“Was there no other honest person in the same party who deserved to be the finance minister of the country?'' said Srivastav. He made such remarks because he was dissatisfied with the finance minister, who changed the tax rate that benefitted some industries while it resulted in the closure of other industries.

 Prakash Rasaili, a member of the committee, said that when he went to an industry where he saw flowers earlier, he found rust and spider webs now. He said that thousands of labourers lost their jobs due to the closure of GI wire and sanitary pad industries due to the unfair policies introduced by Finance Minister Sharma through the budget.

Rasaili said that the finance minister did not stop even when the parliamentary committee instructed the government to reduce the tax rate.

"The policy came in favour of some industrialists and has played a game on the national economy."

Rasaili said that the finance minister ruined 22 iron industries by giving tax exemption on the import of sponge iron last year, and this year the sanitary pad and GI wire industry have been closed after the tax rate was changed. "This shows that the Minister of Finance is on the way to getting very good financial benefits," Rasaili said, adding, "No system can survive in a country where the economy is not strong." 

 He claimed that the country will lose Rs 5 billion in annual revenue, including Rs 1 billion from sanitary pads and Rs 4 billion from GI wire, due to the policy adopted by Finance Minister Sharma. However, the loss cannot be compensated by the import of GI wire and sanitary pads, Rasaili said. 

“Dozens of industries are closed, investment is at risk. More than two thousand labourers have become unemployed. However, the finance minister takes it for granted,” said Rasaili.

After a delegation of eight MPs of the House of Representatives visited the Sunsari Morang Industrial Corridor, Navin Rizal, president of the Morang Merchants Association, said during an interaction that since the assurance given by finance minister to correct the tax rates has not been implemented, there is no option than to take to the streets. He also said that due to Nepal's diplomatic weakness, India's Mirgunj Bridge could not be put into operation despite its construction.