CNI Submits Budget Suggestions to Finance Ministry, Urges Industry-Friendly Policies to Boost Investment
May 10, 2026
The Confederation of Nepalese Industries (CNI) has submitted its suggestions for Nepal’s Fiscal Year 2083/84 budget to Hon’ble Finance Minister Dr. Swarnim Wagle, urging the government to adopt policies that promote industrial expansion and investment growth by recognizing the private sector as the engine of economic development.
Presenting the recommendations on behalf of CNI, President Birendra Raj Pandey stressed that the upcoming budget should support “income generation and wealth creation.” He expressed confidence that implementation of the proposed measures would significantly contribute to economic expansion, employment generation, increased investment, and Nepal’s broader prosperity goals.
CNI’s suggestions cover a wide range of sectors including industry and investment, foreign direct investment, taxation, customs, tourism, agriculture, herbs and forest products, energy, information technology, banking and finance, insurance, cooperatives and capital markets, domestic production promotion, infrastructure, health, education, non-tax revenue, revenue leakage, and anti-money laundering measures.
CNI urged the government to prioritize industrial development through stable policy reforms with at least a 10-year policy continuity framework. It also called for a competitive industrial strategy focused on employment generation, domestic production, and import substitution. Among its suggestions were maintaining at least a two-tier customs duty gap between raw materials and finished products, implementing a net settlement system for customs and refundable taxes on industrial raw materials, and providing tax incentives to industries using at least 40 percent domestic raw materials.
CNI also proposed simplifying and integrating the tax system, clarifying VAT, income tax, and excise provisions, and increasing the minimum personal income tax threshold for individuals to NPR 1 million while reducing tax rates.
Additional recommendations included introducing a risk-based audit system, strengthening tax dispute resolution mechanisms, digitizing tax administration, improving coordination among agencies to control smuggling, and enforcing minimum quality standards for imported goods. The CNI also called for strengthening the Nepal Bureau of Standards and Metrology and accreditation centers, upgrading testing and certification laboratories to international standards, and initiating bilateral recognition of Nepal Standards (NS) and Indian Standards Institute (ISI) certifications with India.
The organization further emphasized giving priority to domestic products in public procurement, implementing digital systems for identifying and purchasing local products, simplifying policies related to sustainable use of natural resources, and introducing subsidy mechanisms linked to production, employment, and exports. It also recommended removing double taxation provisions under Sections 57 and 95A of the Income Tax Act and replacing criminal liabilities in economic offenses with civil liabilities.
CNI also urged the government to create policies encouraging private sector participation in large infrastructure projects, allow industries to use excess land as collateral and for industrial transactions, and introduce mechanisms for offsetting dues between the government and private enterprises.
Responding to the recommendations, Hon’ble Finance Minister Dr. Swarnim Wagle acknowledged the critical role of private sector investment in national development. He emphasized the need for legal and tax reforms and stated that the government is clear that development is not possible without active private sector participation, particularly in infrastructure development.
The meeting was attended by former CNI President Rajesh Kumar Agrawal, past presidents Hari Bhakta Sharma and Vishnu Kumar Agrawal, Senior Vice President Nirvana Chaudhary, Vice Presidents Hem Raj Dhakal, Bhim Ghimire, and Gokul Bhandari, along with other governing council members and committee representatives.