Frequent Policy Reversals Are Eroding Government Credibility: Sur Krishna Vaidya

Dragon Media Correspondent

Sur Krishna Vaidya, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has said that the government’s credibility is being undermined by the practice of introducing policies and regulations only to withdraw them within a few days.

Addressing the inaugural session of the 34th and 35th annual general meetings of the Nepalgunj Chamber of Commerce and Industry, Vaidya said a government commanding nearly a two-thirds majority should change policies and regulations only after extensive consultations with the private sector and other stakeholders.

“This is not a government that is going to collapse after nine months, as happened in the past. A strong government expected to serve for five years should change policies and regulations after broad consultations. It should not be limited to announcing 100-day programmes,” he said.

Vaidya said the absence of clear and long-term economic and business policies had contributed to a large number of businesspeople leaving the sector. He argued that entrepreneurs were continuing to suffer because outdated policies and regulations had not been revised, adding that the government had failed to perform an effective guiding and supportive role for the private sector.

He also called for a review of Nepal’s Value Added Tax structure, arguing that the policy of imposing a uniform 13 percent VAT rate should be reconsidered.

“India has GST rates ranging from 7 to 18 percent. We should also adopt a differentiated system,” Vaidya said. “The government should formulate clear policies within six months to a year and then implement them strictly.”

He stressed that the government should create an environment in which businesses can operate with greater ease. Frequent policy changes generate uncertainty among investors, he said, underlining the need for stable, predictable and implementable economic policies.

The programme was chaired by Nepalgunj Chamber of Commerce and Industry President Tank Dhami. Sudurpaschim Province President Pushpa Kunwar, leaders from various political parties, former presidents of the chamber, and representatives from revenue and customs offices also addressed issues concerning business interests and the challenges facing the private sector.

Nisha Shah and Sajal Gaire were honoured during the programme.