Strengthening Business-Government Relations for Positive Growth

Business owners in Rupandehi have recognized the need for positive improvements in coordination with the administration, revenue policies, and security agencies to foster a harmonious business environment. During a recent interaction program on revenue scrutiny held in Bhairahawa, participants highlighted the challenges faced by the private sector due to administrative complexities, illicit activities, and behavioral discomfort. Thakur Kumar Shrestha, President of Nepal Chamber of Commerce and Industry Lumbini Province, urged the government and relevant authorities to prevent legal businesspersons from being treated as criminals and emphasized the importance of maintaining a friendly environment for revenue and road inspections. He emphasized the need to ensure a respectable flow of services in the revenue evaluation system and create trust in the revenue system. Deepak Kumar Basnet, Deputy Inspector General of Nepal Police, highlighted the importance of collaborative and trust-based relationships between the police and businesses, emphasizing the necessity of private sector support in controlling illicit activities in border areas. He called for information exchange on individuals involved in illicit businesses to prevent negative practices from affecting the entire sector. Bharat Mani Paudel, Deputy Director of the Revenue Department, emphasized the priority of simplifying business operations, enhancing revenue collection, and balancing social security through efficient customs administration. He mentioned the transformation of revenue processes towards technological advancement and urged businesses to engage more in online services to enhance their integration into the formal economy. Addressing the issue of informal trade and low tax compliance in the market, he stated that the non-filing of details by over 60% of taxpayers is detrimental to both the state and businesses. Participants in the program also expressed the need for reforms in the revenue and tax administration to improve efficiency. Businessman Vishnu Sharma highlighted additional challenges in the import process due to lack of coordination among various agencies, leading to further complications in the market competition. Moreover, businessman Chandrabhakta Shrestha pointed out that the increasing border market prices due to high tax rates create an environment where consumers are drawn towards external markets. He suggested that government policies should not solely focus on revenue collection but also consider broader aspects for the benefit of all stakeholders. In a discussion organized by the Siddharth Business and Industry Association, participants highlighted obstacles in border areas, long traffic jams, and procedural complexities leading to additional costs for businesses, urging the government to take concrete steps towards effective governance and administrative improvements.