Speaking at a programme organised here to mark International Customs Day today, business leaders called for a revision of the cash transaction ceiling that has been in place since January 15.
The event was attended by Finance Minister Rameshore Prasad Khanal, President of Federation of Nepalese Chambers of Commerce & Industry (FNCCI) Chandra Prasad Dhakal, and President of the Nepal Chamber of Commerce, Kamalesh Kumar Agrawal, among others.
Speakers echoed the need to amend the provision that mandates banking transactions for cash dealings exceeding Rs 500,000.
FNCCI President Dhakal added that access to banking services has not yet been fully ensured across the country. At such a situation, he said, restrictions on cash transactions above Rs 500,000 outside the formal banking system have posed challenges for the business community. However, he acknowledged that the policy might have been introduced due to pressure on the government and Nepal Rastra Bank from the international community following Nepal’s placement on the FATF Grey List over money laundering concerns.
“This is the right time to revise economic policies to create a more favourable investment climate and strengthen the private sector,” Dhakal said. He urged the government to prioritise the promotion of businesses and enterprises rather than focus on customs revenue. He also added the hotel and tourism sectors have not received facilities comparable to those provided to other industries.
President of Nepal Chamber of Commerce, Agrawal, stressed customs administration plays a crucial role in the national economy and trade facilitation, calling for stronger economic governance. He argued that the existing Customs Act incorporates rigid provisions related to penalties and fines. Highlighting the need for multiple VAT rates, he also proposed developing Nepal as a wedding destination.
Meanwhile, Prachin Kumar Thaiba, Chair of the Federation of Customs Agents, underlined the importance of controlling illegal trade to support economic growth and revenue mobilisation. He further emphasised the need for transparent, technology-driven, and trade-friendly customs systems to facilitate foreign trade. (RSS)
