Koshi Province Industries Nepal Budget 2025: Power Cuts, Tax Reform, Trade Policy
10th April 2025, Kathmandu
A group of industrialists from Koshi Province met Finance Minister Bishnu Poudel on Wednesday. They handed over written suggestions for the upcoming fiscal year’s national budget. The delegation visited the minister’s office and shared key issues affecting industries in Eastern Nepal.
Koshi Province Industries Nepal Budget
Key Representatives Involved
The delegation included Rakesh Surana, President of the Morang Chamber of Industries; Anupam Rathi, President of the Morang Trade Association; and Vijay Shrestha, President of the Sunsari Chamber of Commerce and Industry. Several other business leaders from the region also participated.
Issues Faced by Industries
The delegation raised multiple concerns. One major issue was power cuts. Industries in the region still face 6 to 8 hours of daily load-shedding. They urged the government to invest in infrastructure such as transmission lines and hydropower projects.
Surana stressed the need for a reliable power supply to support productivity. He also urged the government to release pending payments such as export incentives and tax rebates without delay.
Push for Policy Stability
The team requested stable government policies. They asked for regulations on open border trade and legal provisions for managing credit-based transactions. This, they said, would create a more trustworthy business environment.
Logistics and Customs Concerns
Logistics costs were another major concern. The delegation said logistics expenses account for over 30% of total trade costs. They highlighted the importance of the Biratnagar Cargo Rail and requested a reduction in its handling fees to boost its use.
The team also pointed out inconsistencies in customs duties. In some industries, the gap between raw material and finished goods tariffs is as wide as three tiers. In others, it is only one. They recommended a uniform customs rate across all sectors.
MSME and Startup Support
The delegation proposed changes to Section 57 of the Income Tax Act 2058. They want to make it easier for small and medium enterprises to receive capital support. They also suggested providing tax exemptions for startup investments instead of just treating seed capital as a deductible expense.
Concerns Over Tax Burden and Smuggling
Anupam Rathi expressed concern over the economic slowdown. He urged the minister to bring a budget that boosts market confidence. He also highlighted the impact of higher customs duties and VAT on cotton goods. According to him, this led to an increase in smuggling.
He called for a review of taxes on essential goods like clothing, kitchen items, and daily consumables. Lowering these taxes, he said, could help reduce illegal trade and increase legal imports.
Final Appeal to Government
The delegation asked the Finance Minister to consider their suggestions seriously. They emphasized that these reforms could improve business conditions and promote industrial growth.
The meeting also included FNCCI members Nabin Rijal, Nand Kishore Rathi, Bipin Kawra, and Anil Sarada. Together, they called for practical steps in the upcoming budget to support Eastern Nepal’s industries.
For more: Koshi Province Industries Nepal Budget
