Farmers switching to Fish Farming due to High Rate of Return

BHAIRAHAWA, Jan 26: Lured by fast cash, more farmers in Rupandehi are turning to commercial fish farming.

Many farmers in the district are shifting from traditional food crop to fish farming as the rate of return on the latter is high.

According to District Agriculture Office (DAO) Rupandehi, commercial fish farming is done in around 900 hectares in the district. In Chapiya of Dayanagar-8 alone, commercial fish farming is done in over 200 hectares.

Gopal Prashad Pandey, a farmer from Chapiya, told Republica that farmers are shifting to commercial fish farming as crop yields cannot meet even their daily needs. “Many farmers here have become financially successful through fish farming,” Pandey, who is also the chairman of Jaldevi Fish Production Cooperative, said.
According to Pandey, overseas returnees are also involved in commercial fish farming.

Not only the farmers of Chapiya, the popularity of fish farming has gripped the Maanmateriya VDC also. Punya Prashad Chaudhary, a farmer of Maanmateriya, said he recently fish farming from 0.20 hectare to 4 hectares. “Unlike traditional crops, fish farming ensures regular income throughout the year,” he added.

Farmers say they do not have problem finding market for their production. “We do not have to stroll in the city to sell our products as merchants come to our village itself,” Faudar Tharu, a farmer at Bhaglapur, said.

Apart from 900 hectares of land, commercial fish farming is also being done in 126 natural ponds in the district. According to DAO Rupandehi, 3,510 tons of fish is produced in the district annually.

Source: myrepublica.com,  26th Jan 2014
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Latest Cinema Experience - Dine while you watch movie

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Latest Cinema Experience - Dine while you watch movie

KATHMANDU, Jan 18: With an objective to provide a different cinema viewing experience to the customers, a new multiplex with dining experience is coming up at CTC Mall in Sundhara.

 Cine de Chef Company is opening a new cinema hall named Cine de Chef within next two weeks which provides movie goers with the experience of latest movie as well as mouth-watering food while watching the movie.

The company claims that it is the first of its kind cinema hall in Nepal which has a built-in kitchen that serves full breakfast, lunch and dinner besides just tit-bits that the cinema halls are serving currently.

“At a time when state-of-the art cinema halls are turning into the most appealing destination for moviegoers, we have tried to enhance their experience by providing various new facilities like introducing latest electronic menu to order food, recliner chairs to tilt according to the need, mini freezers in the chair, Meyer EXP sound system and Christie Digital 2K and 4K projectors among others,” said Gaurav Goel, managing director of the company adding that all these facilities are introduced for the first time in Nepal.

The multiplex will have two different theatres: Cine Dine and Cine with capacity of 58 seats and 169 seats respectively. According to Goel, at Cine Dine, customers can order their food from the electronic menu through a tablet where in they can select the food item and set their time of receiving the food which will directly be forwarded to the kitchen.
At Cine Dine waiters will be at customers´ service while in Cine customers have to go and order their food and get it themselves.

Cine Dine is equipped with leather recliner chairs which can be tilted to 150 degrees and is equipped with touch sensors, back massager inbuilt in the chair, mini freezer, space, waiter call button and lamps among others. Cine will have 30 luxury sofa and 139 normal chairs.

Customers can experience the Meyer EXP sound system which helps to create soundtracks with greater nuance and precision, and give cinema operators the ability to reproduce these soundtracks without distortion to every seat in the theatre.

Goel claims that only 4 to 5 movie theaters across the globe has used Meyer which is the official sound sponsor of Metallica and Beijing Olympics held in 2008.
The Christie Digital Projectors is being introduced for the first time in Nepal provides precise and clear image viewing experience to the viewers.

Besides all these, the theatre has two bars that serve organic cocktail and mocktails and the lobby area has been made interactive where touch screen displays have been installed. Customers can play games and watch movie trailers through 42-inch displays.

According to the company, customers will have to pay Rs 600 to Rs 1,500 for enjoying movie at Cine Dine and Rs 400 to Rs 700 to enjoy movie at Cine depending upon the time of the show and days. The tickets include complimentary food items. The company is also planning to open Cine de Chef inside the valley within this year.

Source:myrepublica.com,  18th Jan 2014
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Nepal Urges Asian Neighbours to Invest in Nepal

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Nepal urges Asian neighbours to invest in Nepal

KATHMANDU, Jan 10: Government officials have urged foreign investors to increase trade and investment cooperation in Nepal.

Nepal has put high priority on attracting foreign investment in crucial sectors such as hydropower, tourism, road transport and agriculture for the past few years.

Speaking at an interaction organized in Kolkata on Thursday, Chandra Kumar Ghimire, Nepali Consul General in Kolkata, said investors would benefit greatly by putting their money in Nepal which is strategically located between two Asian economic giants -- India and China.

“I want to urge foreign investors, specially prominent Indian investors, to invest in Nepal which enjoys duty free access to Indian and Chinese markets for large numbers of products,” Ghimire said at a conclave on “Bilateral Trade: Opportunities and Challenges” organized by Bharat Chamber of Commerce Kolkata Chapter.

The program also saw participation of consul generals of other neighboring countries like China, Bangladesh and Myanmar.
At the conclave, participants from different countries exchanged their views on increasing trade and investment relation between India and their respective countries.

India, which has already emerged as the Asia´s third largest economy after China and Japan, is heading toward becoming one of the world´s economic superpower.
On the occasion, Ghimire informed the participants about the progress that Nepal has made in different sectors like education, telecommunication, infrastructure and media, despite prolonged political instability.

He also said Nepal has been offering different incentives to lure big investment in hydropower, agro-processing, tourism, carpet, garment, cement, herbal processing, tea, coffee, medical, engineering, education and Information Technology, among others.

Nepal has allowed foreign investment of up to 80 percent in telecom, 90 percent in aviation, 51 percent in consultancy services and 100 percent in industries other than cottage firms, travel and tour agencies and some restricted business.

“Nepal is one of the liberal and appropriate destinations for investments in South Asia,” claimed Ghimire.  Other participants stressed the need to remove tariff as well as non-tariff barriers and enhance transport connectivity between partner countries to boost bilateral trade.

They also suggested that the host countries develop trade infrastructure and simplify visa system to facilitate foreign investors.

Source: myrepublica.com, Jan 10th 2014
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Tax Dodgers in Nepal to face stern action

KATHMANDU, JAN 11 -

 

After failing to attract expected number of tax payers under a special scheme that offers a certain tax exemption, the government on Friday said it will take stern action against tax evaders.

 

The Financial Ordinance 2013 has offered different levels of tax exemptions to different types of tax payers, provided they pay outstanding tax es within mid-January 2014. The targeted tax payers are private institutions, small traders, cooperatives, professionals and other individuals. The scheme has been designed for both income tax payers and VAT payers.

 

Under the scheme, tax payers who have registered with tax office for years have been allowed to register by paying the tax for the last two years only. Although the private sector has been demanding an extension to the deadline, the government on Friday made it clear the deadline will not be extended, warning of a sterner action after the deadline ends.

 

Speaking at an interaction with the regulators such as Insurance Board and Securities Board of Nepal, Finance Minister Shankar Prasad Koirala told those not responding to the government’s scheme not to expect a deadline extension. “After the current deadline ends, the revenue authority will reach to your doorstep to take a legal action,” he said.

 

According to the Inland Revenue Department (IRD), around 4,400 small traders having annual transaction of less than Rs 2 million, who were facing problem of mismatch in tax records, were supposed to avail facility. “But only 1,000 such traders have come forth,” said IRD General Director Tanka Mani Sharma.

 

Under programme, traders have been asked to pay income tax for fiscal year 2010-11 and 2011-12 

within mid-January 2014 to get exemptions in tax , fees and interest. The facility was announced after traders’ complaints about record mismatch.

 

According to the IRD, only around 600 professionals took the benefit of the scheme, IRD officials termed disappointing. The Financial Ordinance has told the professionals—who are liable to pay tax es but have not acquired Personal Account Number (PAN) and have failed to pay income tax until fiscal year 2011-12—to pay the tax es for fiscal year 2010-11 and fiscal year 2011-12 within mid-January 2014. If they do so, they will be exempted from paying income tax es for previous fiscal years, fee and interest. 

 

Sharma said although there are some 30,000 cooperatives, only 15,000-16,000 have been registered with the tax authority.

 

He said those failing to apply for the current facility will be penalised and asked to pay their entire tax liability. 

 

During the interaction, government officials asked the regulators to help increase the number of tax payers as well as recover tax es through a mechanism under 

which transactions of tax payers would be affected if they fail to clear their tax es.

 

 Finance Minister Koirala asked the regulator to make mandatory that those seeking to register with the regulator should first register with the tax authority.

 

 Finance Secretary Shanta Raj Subedi asked the regulators to tell their licensees that they would not be able to defend them if the tax authority initiates action.

Source: ekantipur.com, Jan 11th 2014

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Malaysia no longer allows foreign workers in restaurants and fast food chains

MALAYSIA, JAN 11 -

 

With fast-food restaurant operators in Malaysia no longer allowed to hire foreign workers, it is likely to have an adverse effect on prospective Nepali migrant workers.

 

A meeting of the Cabinet Committee on Foreign Workers and Illegal Im migrant s of Malaysia chaired by Deputy Prime Minister Muhyiddin Yassin recently took a decision to this effect with an aim to encourage the local work force in the sector.

 

There has been a growing demand of Nepalis in international food chains like KFC. And, the decision could affect thousands of Nepali aspirants who are preferred for such frontline office jobs, including waiter and cashier. Most of the Nepalis working in Malaysian restaurants serve as cook, kitchen help and cleaner, among others. 

 

Although the Malaysian government has said it won’t entertain foreign workers, no further details have been given. An official at Nepal’s embassy in Malaysia told 

the Post he came to know about the issue through the media and is yet to get detailed information. 

Restaurants and fast food chains are among the most soft after employers in Malaysia after, security jobs. It has been learnt the Malaysian government took the decision considering the youngsters’ attraction towards the sector. 

 

One of the manpower agents said as the number of foreign workers in fast food chains and restaurants is already less, it won’t have a big impact on Nepali workers. “Most of the restaurants and fast food chains have native workers. Therefore, it won’t have a big impact on Nepalis.”

 

“Fast food restaurant operators are barred off deploying foreign workers, as many locals are attracted towards this profession,” Yassin was quoted in news carried by local newspaper New States Times. 

 

“We should prioritize locals in this sector.”

The Malaysian government had permitted foreign workers in fast food restaurants, newspaper shops and as cleaners in Dec 27, 2011. 

 

Since it is easier to work in the services sector compared to others, the locals aren’t much interested sectors like construction and agriculture.

 

In a bid to cut the number of foreign workers and manage them properly, Malaysia had introduced a blanket amnesty and validation schem in 2011.

 

ID cards for migrant s

MALAYSIA: The Malaysian government has said it will provide identity cards to around 2.3 million migrant workers. The cards, which will have thumb prints of the holders, will be different in colour based on the sectors the cardholders work in. The card is likely to come into the practice from November 15. (PR)

 

Source: ekantipur.com, Jan 11th 2014

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Operating Capacity of Nepalese Industries at 57.83%

KATHMANDU, JAN 12 -

Capacity utilisation of Nepali manufacturing industries could not go up in the last fiscal year, thanks to poor industrial environment as a result of protracted political transition, power crisis and skilled labour shortage.

The average capacity utilisation of industries stood at 57.83 percent, according to a study carried out by the Nepal Rastra Bank (NRB) in eight major cities and surrounding areas covering 47 districts. Industrialists have also termed the level of capacity utilisation poor.

The study was carried out on industries producing 23 products in Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and Dhangadhi and surrounding areas.
Industries manufacturing vegetable ghee, cooking oil, rice, wheat flour, biscuits, sugar, noodles, animal feed, processed tea, beverages, liquor and cigarette were surveyed. Other surveyed were those producing of cotton textiles, woollen garment, pashmina, garment, paper, soap, brick, cement, iron and steel and electric wire.

The level of capacity utilisation last year is almost same to that of the previous fiscal year 2011-12 when the figure was at 57.79 percent. However, the previous fiscal year’s survey was done on 18 products in 42 districts, including all the aforementioned cities.

According to the NRB report named “Economic Activity Report 2012-13”, noodles factories witnessed the highest capacity utilisation of 87.4 percent, while rice factories posted the poorest 22.1 percent.

Hari Bhakta Sharma, vice president of the Confederation of Nepalese Industries (CNI), said the main constraint for domestic industries to run at full capacity is energy crisis. “Most of the industries are not being able to operate due to power shortage,” said Sharma. “This has also increased the cost of production and operational costs.”

Labour-related issues, other local-level problems and the government’s failure to maintain efficient supply chain have also affected industries . “There is no efficient supply chain in Nepal. Some this or the other is also affecting industrial operation,” he said. “Take an example of problems created by truck entrepreneurs now.”

Sharma urged the government to shift its focus to the industrial sector and provide necessary support for its sustainable growth.

According to the NRB study, a big downfall in paddy production last fiscal year contributed to the dismal performance of rice factories. The report, however, said the state of rice industries this year will be better as rice production is forecast to be better this year. The report has said industries producing items like noodles, biscuits and light beverages will witness a positive growth, with improving living standard of the general people and changing consumption trend.

During the review period, industries manufacturing soybean oil, rice, wheat flour, animal feed, biscuit, sugar, noodles, refined tea, liquor, beer, refined leather, resin, medical products, plastic products, brick, cement, iron and steel, GI wire, metal utensils, aluminium products and footwear posted growth in terms production capacity. Industries witnessing fall in production capacity include those manufacturing vegetable ghee, mustard oil, dairy products, light beverage, thread, synthetic apparels, jute products, wooden products, paper, electric wire and cable, and tire and tube, among others.

The report has also identified major manufacturing items being produced in different regions. While Kathmandu and its surrounding primarily boasts of industries producing refined milk, pashmina, noodles and footwear, Biratnagar comprises mostly industries that manufacture ghee and oil, daily essentials, jute products, metal products and cement, among others. Janakpur area features industries producing sugar, liquor, paper and cement among others, whereas Birgunj mostly has factories making refined milk, animal feed, light beverage, cigarette, leather, apparels, cement, refined lather and medical items.

Pokhara mostly has biscuit, noodles and rubber industries ; Siddharthanagar wheat flour, light beverage and cement; Nepaljung mustard oil, wheat flour, rice; and Dhangadhi hosts industries making wheat flour and resin.
 
Economic activity report ’12-13
 
Top 5 industries with highest capacity utilisation

Industry    Utilisation
Noodles     87.35%
Refined tea     82.41%
Liquor     79.62%
Biscuit     71.99%
Light beverage     71.77%
 
Top 5 industries with lowest capacity utilisation
Industry    Utilisation
Rice     22.12%
Vegetable ghee     22.38%
Electric wire     38.13%
Pashmina     41.44%
Animal feed     44.36%

Source:ekantipur.com, Jan 12th 2014
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 Nepalese Businesses in Hongkong expanding to China
 

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Nepalese businesses in Hongkong expanding to China

HONG KONG, Jan 9: A Hong Kong government official has said that Nepali businessmen who are established in Hong Kong are now expanding their businesses to China.

Speaking at the sixth anniversary of Nepal Chamber of Commerce (NCC) - Hong Kong, held on Tuesday, Director General of InvestHK Charles Ng said the government was aware about the Nepali companies doing good business in Hong Kong.

 InvestHK is the government body of Hong Kong Special Administrative Region responsible for foreign direct investment. “Nepali businessmen are now expanding their arm toward China after being established in Hong Kong,” he said.

Nepal´s Consul General to Hong Kong Mahesh Prasad Dahal urged the chamber to bring plans for promotion of Nepal-Hong Kong trade.

Similarly, Richard Vuylsteke, the president of American Chamber of Commerce in Hong Kong, said his group was ready to work with NCC-Hong Kong.

NCC-Hong Kong Chairman Dasu Ram Parajuli said NCC-Hong Kong would remain active in the coming days in encouraging Nepalis working in Honk Kong to start their own businesses and promote Hong Kong-Nepal trade.

Source:myrepublica.com, 9th Jan 2014
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Tourism in Nepal a major economic activity

KATHMANDU, JAN 10 -

Chief Secretary Lilamani Poudel has said tourism has emerged as a major economic activity in Nepal and is expected to do wonders in the coming years in terms of employment generation and poverty alleviation.

At the time when other sectors are not performing well, tourism is only the sector that could benefit Nepal in the short-run, said Paudel addressing the 50th annual general meeting of Nepal Association of Tour and Travel Agents (NATTA) here on Thursday.

Saying that attracting 100,000 tourists means adding 50,000 jobs, he said: “Hence, in the present context, tourism can change the fortunes of remote areas as well other places with potential but lacking infrastructure.

Areas such as far-west have a lot of potential to attract visitors, but it is disappointing that the areas have not been explored yet.”

He urged the private sector to come up with a strategic plan, under which the government can mobilise resources to develop a particular sector, eventually benefiting the rural areas.
Tourism Secretary Sushil Ghimire said a strong national flag career plays a crucial role in the development of tourism. “In Nepal, it took almost 26 years to buy planes for the national flag carrier. This fact has shown why Nepal is lagging behind,” he said, adding planners and policymakers must realise the fact.

Federation of Nepalese Chambers of Commerce and Industry President Suraj Vaidya said the country is receiving huge investment in tourism after hydropower. He said Nepal has observed sustained growth in terms of the number of tourists, but has not been able to attract quality tourists.

“We should not run after the numbers. We need to look what is the value of tourism or what quality tourism means to Nepal,” he said, adding the private sector has expected the new government will bring a Labour Bill to ensure and create business-friendly environment.

Outgoing NATTA President Pavitra Kumar Karki lamented the country has not been able to increase the average length stay of tourists.

Poor airport infrastructure, weak performance of Nepal Airlines and uncontrolled airfare are some challenges for the country’s tourism, he said.

 
Post journo Prasain awarded

Nepal Associ-ation of Tour and Travel Agents (NATTA) has felicitated The Kathmandu Post scribe Sangam Prasain with the NATTA Media Award 2013 for his significant contribution to the development of Nepal’s tourism through journalism.

 Prasain was conferred a plaque and cash award by Minister for Culture, Tourism and Civil Aviation Ram Kumar Shrestha amid NATTA’s 50th annual general meeting. Ramesh Tiwari from an online media and Kedar Koirala of Mountain TV were also honoured. Tourism entrepreneur Bikram Pandey was awarded with NATTA Bhaskar Award 2013. (PR).

Source:ekantipur.com, Jan 10th 2014
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Strawberry Farming expanding well in Nepal VDCs

NUWAKOT, JAN 10 -

Industry Minister Shankar Koirala has lauded the hard work and success achieved by strawberry farmers in Kakani, Nuwakot. Speaking at an interaction programme during a visit to the strawberry fields, Koirala praised the entrepreneurs for diversifying their products and exporting them to India.
Strawberry farming is being promoted by Micro Enterprise Development Programme (MEDEP) to support low-income families to grow the high value crop and improve their livelihoods.

Entrepreneurs say they produce strawberry worth Rs 50 million annually. In 2013, farmers of Okharpauwa and Hilevitta VDCs in Nuwakot grew 1.57 million kg of strawberries and earned Rs 15 million from exports to India.

Their products including fresh fruit, jam and jelly are being used by five-star hotels and are sold from outlets ranging from supermarkets to footpath stalls in Kathmandu. Door-to-door vendors in the capital also sell the products. In addition to sales of strawberry , sales of jam, jelly and candy made from the fruit amounted to Rs 1.4 million in 2013. Minister Koirala said this was an example of product diversification and market exploration at different levels. He added that the government had identified a few fruits in which Nepal could be self-sufficient this year. He added that next year’s budget was expected to identify strawberry as one such product.

“You have been selling your products across the border and contributing to the government’s efforts to reduce the trade deficit with India. We are trying to resolve issues of cross-border trade that will enable strawberries to be easily exported to India,” he told the entrepreneurs.

Likewise, Industry Secretary Krishna Gyawali said that strawberry was a very promising and profitable crop as it has a high return on investment of 80 percent and a very low breakeven point of 14 percent. He added that he would attempt to include strawberry in the One Village, One Product campaign.

 Gyawali said: “As strawberry farming has been expanded to six other districts with MEDEP support, it brings bo-th challenges and opportunities to the farmers of Kakani, and you should continuously focus on improving quality”.

Source: ekantipur.com, Jan 10th 2014
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Century Commercial Bank Launches IPO

KATHMANDU, JAN 10 -

Century Commercial Bank launched initial public offering (IPO) worth Rs 920 million on Thursday. The bank has issued 9,200,000 primary shares priced at Rs 100 apiece.

The bank has estimated to have received applications for the primary shares worth Rs 500 million on the first day. “Based on the first day’s estimated demand, there could be an over-subscription of 5-10 times,” said Century CEO Ganesh Kumar Shrestha.

Century said it has allocated 460,000 shares for the bank’s staff, while another 460,000 units have been separated for institutional investors. Century is the latest private commercial bank to do IPO.

Except for state-owned Rastriya Banijya Bank, all commercial banks in Nepal have gone public.
Century has appointed Citizen Investment Trust, Growmore Merchant Banker, NIDC Capital Markets, Nabil Capital and Civil Capital as sales and issue managers. It has been collecting applications from 44 outlets. These include the bank’s 31 branch offices, 11 merchant banks and two finance companies, including Guheswori Merchant Banking and Finance and Sagarmatha Merchant Banking and Finance. Established two years ago, Century has 568 promoter shareholders from 43 districts.

Source:ekantipur.com, Jan 10th 2014
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Free Wi-Fi now available in Kantipur Deluxe Buses

KATHMANDU, JAN 09 -
If you have an advanced mobile set or a tablet or laptop with wireless connectivity, you can now be online as you travel to your destination in a public bus as well.


This has been made possible through free Wi-Fi internet service now available in the Kantipur Deluxe buses that travel on the Nepalgunj-Kathmandu-Nepalgunj route.


With this service, passengers can use all kinds of internet facilities inside the bus itself, said Govinda Poudel, Vice-president of Namaste Nepal that operates the bus.


We hope that the free internet service can help the passengers pass away the boredom of the 540 kilometers long journey from here to the capital or vice-versa, adds Poudel.


Namaste Nepal runs a total of 13 buses and free Wi-Fi will available in all of them. RSS.

Source:ekantipur.com, Jan 9th 2014
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Internet Protocol Television Service to be Launched for the first time in Nepal

KATHMANDU, JAN 05 -

 

Two companies — Orient Digital Media and Subisu Cable Net — are planning to launch Internet Protocol Television ( IPTV ) service for the first time in the country. 

 

Orient has already received the licence, while Subisu has applied for the permission from the Ministry of Information and Communications.

 

Through IPTV , television contents are delivered to viewers through internet instead of traditional terrestrial broadcast, satellite signal or cable television formats. Subscriber of IPTV can watch TV even in smartphones and tablets. 

 

Subisu, one of the leading internet service providers of the country, has said it will start the service by March with 15 channels. “We are hopeful to get the government permission within a week,” said Subisu CEO Sudhir Parajuli, adding the company is currently working on the packages to be offered.

Although Orient acquired the licence about eight months ago, it is yet to launch the service. “Orient Digital has not started the service, and Subisu is yet to complete the application procedure,” said Shailaja Regmi, chief of Audio-Visual and Broadcasting Section of the Communications Ministry. She said after receiving the permission, companies get a maximum of 18 months to start the service, and if they fail to do so within the time frame, their licence will be scrapped. 

 

The Communications Ministry has fixed the licence fee at Rs 25,000 per channel and the annual renewal fee at 10 percent of licence fee. 

 

Besides the two companies, state-owned Nepal Telecom (NT) too has expressed interest in operating IPTV service. “Although the service is in our plan, no concrete decision has been made so far,” said Guna Keshari Pradhan, spokesperson for NT. 

 

Based on local companies’ interest to provide the IPTV service, the government about two years ago had opened the licence. 

 

Sources at the Communications Ministry said Orient, which has investment from non-Resident Nepalis (NRNs), is facing legal hurdles, delaying the service launch. 

“We have heard the company is facing legal complication over the repatriation of earning made from here,” the source said. “The company has been permitted for 

36 channels.”

 

Source:ekantipur.com, Jan 5th 2014

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Gold Price Increases while Nepalese Rupee falls

KATHMANDU, Jan 3: Nepali rupee weakened by 65 paisa this week as the Indian currency, with which rupee is pegged, shed value against the greenback. Price of gold, on the other hand, increased by Rs 860 per 10 grams over the week in line with the price movement in international bullion market.

CURRENCY
Nepali rupee dropped to 99.92 against US dollar, losing 65 paisa over the week. Nepal Rastra Bank (NRB), the central monetary authority, opened currency trading on Sunday with exchange rate of US dollar fixed at Rs 99.27.

Rupee remained unchanged on Monday but lost 9 paisa on Tuesday to settle at 99.36. The local currency, however, rallied, gaining 17paisa to close at 99.19 on Wednesday. Rupee dropped 16 paisa against US dollar on Thursday to settle at 99.35 after Indian currency weakened against the greenback.

According to Reuters, the Indian currency fell to a one-month low on Friday, extending losses for a third consecutive session, as the dollar strengthened against emerging Asian currencies and as a bout of risk aversion hit local stocks.

Rupee shed 57 paisa on Friday - the last trading day of the week - to close at 99.92.
The local currency gained 48 paisa against Euro but lost a whopping Rs 1.32 against British Pound over the week. A Euro was valued at Rs 136.79 on Friday, while the Pound Sterling was exchanged at Rs 165.29.

BULLION

Gold glittered this week as its price went up by Rs 860 per 10 grams over the week.

The Federation of Nepal Gold and Silver Dealers Associations opened bullion trading on Sunday with price of gold fixed at Rs 44,580 per 10 grams. Though gold price remained unchanged but on Tuesday, it went down by Rs 340 per 10 grams to Rs 44,240. The price remained unchanged on Wednesday.

Gold price, however, went up by Rs 640 per 10 grams to Rs 44,880 on Thursday. Price of the precious metal increased further by Rs 560 per 10 grams to close the week at Rs 45,440.
Price of silver also increased by Rs 4 per 10 grams to close at Rs 741.5 this week.

Source:myrepublica.com, Jan 4th 2014
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Load Shedding in Nepal to be 12 hours per day from January 5th

KATHMANDU: Nepal Electricity Authority (NEA) has said the current load- shedding hours would be increased from 11 to 12 hours round the clock to be effective from January 5.

Issuing a press release on Thursday, the NEA said with the increased load-shedding, there will be 80 hours of darkness a week.

However, the industries run by the private sectors will have 14 hours power outage while it will be just nine hours for the industries run by the government.

Source:myrepublica.com, Jan 5th 2014
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Tourist arrivials to Upper Mustang increased in 2013

BAGLUNG, Jan 4: Though the tourist arrival across the country decreased in 2013 due to political instability, especially general or transport strikes, the number of tourists visiting Upper Mustang actually increased compared to the previous year.

With this the collection of revenue also increased, up to Rs 200 million, according to Annapurna Conservation Area Project (ACAP).

The cost of traveling in the ´controlled area´ as announced by the government is very high. Foreigners who wish to visit the area have to take permission from the Department of Immigration (DoI) by paying US$ 500. By paying US$ 500 they can stay in the area for 10 days and if they want to extend they have to pay additional US$ 50 per day. However, the cost does not seem to have affected the tourist visiting Upper Mustang.

According to Santosh Sherchan, chief of ACAP, a total of 3,344 foreign tourists visited Lo Manthang in 2013. ´Despite all odds, we had scores of more tourists and we were able to earn revenue worth Rs 200 million,” said Sherchan, adding that there were many tourists who extended their stay by paying additional charges.

The number of tourist from France, Germany, the United States, the United Kingdom and China increased after Upper Mustang was listed as one of the worlds´ best destination.
´Lonely Planet Travel Guide Book´ had listed Upper Mustang in the third position of the world´s top ten best destinations.

“Though the number of tourist increased, our expectation was much more as the area was listed in the third best destination in the world. However, strikes, political disturbances, Constituent Assembly (CA) election and fear of insecurity hindered the arrival of tourists,” said Khagendra Tulachan, president of Mustang Hotel Association of Nepal.

The scenic Himalayan range, traditional monasteries, caves and palaces built back in the middle ages, old houses, art and culture among others factors attract the tourist. Besides, they also visit the area for carrying out the research of traditional art and culture.

The ´controlled area´ was opened for foreign tourist only in 1992 and till date, the government has earned around Rs 2 billion from them, according to the District Development Committee. However, the locals complain that the government has hardly spent money for the development of the region.

´The government has earned millions of rupees and if some of the amount could be spent for the development of the region more tourists can be attracted,” said Tashi Bista, a youth advisor of Upper Mustang Youth Society.


Source:myrepublica.com, Jan 4th 2014
 
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NEPSE likely to continue bullish trend

KATHMANDU, Jan 3: Amid euphoria among investors who are feeling more optimistic about the prospects of a more comfortable environment for investment, the upward journey of the Nepal Stock Exchange (Nepse) Index is expected to continue and surpass 2013´s record of 806.82 points.

They hope to benefit from a rallying secondary stock market this year against the backdrop of improvement in the political situation of the country.

The Nepse Index -- which measures the investors´ confidence in the capital market -- reached a five-year high on December 18 to close at 806.82 points. Daily turnover also touched an all-time high of Rs 810 million the following day.

Investors seem to be ready to put more money on shares backed by the strong gains enjoyed over the last year.

They are hopeful that 2014 will be a year of highs and good reward for them. “The market has promised big returns for us this year which is reflected in the impressive surge of the benchmark index in recent days. The bullish trend is set to stay put in the coming days,” Balaram Phuyal, a migrant returnee who has poured his hard-earned overseas earnings into shares, told Republica on Thursday.

Phuyal, a frequent visitor to Vision Securities -- a broker agency in Putalisadak -- predicted that unlike in 2013, when the market started climbing up only in the final months, the market this year will surge in leaps and bounds throughout the year. “The new year will bring rejuvenation for investors. Growth will rock the capital market,” he added.
Enticed by the growth after a five-year slowdown, investors have a couple of reasons that has restored their confidence in a market revival.

The sweeping victory of parties advocating free market policy in the Constituent Assembly (CA) election has shored up the confidence of the investors. Investors are feeling more secure following an agreement among the parties pledging to move ahead with the constitution drafting process.

However, others view the surge in the secondary market with caution.
For them, the abrupt growth in the market could prove to be a disaster waiting to happen at some point.

They maintain that the market has been rallying largely on sentiments, speculation and the whim of a handful of vested-interest investors rather than  proper evaluation of the companies´ financial positions.

An investor requesting anonymity told Republica that investors should be careful while investing, especially at a time when a roller coaster like situation exists in the market.

“A handful of big investors are taking the share market into their hands creating the situation to trade shares as per their benefits. This will bring the existing rally in stock market back to the position of earlier disasters,” said the investor, recalling the slowdown toward the end of 2008 after the markets hit new heights early on.

The investor is cautious that the market will be manipulated by them as they take advantage of the positive political development and other favorable developments.

In response to the unusual trend seen in the market, regulatory bodies employ control measures to secure the interest of investors. Nepal Rastra Bank (NRB), the central bank, though it is not the capital market regulator, has expressed its concerns over ´impressive´ growth in the stock market and demanded details from banks about the status of margin lending with them.

NRB´s move worked as a speed breaker on the soaring market to bring down the upsurge of the benchmark index.

The Securities Board of Nepal (Sebon) Spokesperson Niraj Giri said the securities market regulator was closely watching the capital market activities and conducting the necessary surveillance.

“We regulate and systematize the market as and when required to prevent any undue manipulation by anyone,” said Giri.

Stock analyst Bikram Chitrakar, however, argued that the rising trend would be sustained by strong backing by some factors.

“The relatively swelling daily turnover, investment diversification rather than concentrating in a particular sub-group and the increasing entrance of new investors to secondary market are the key reasons that have been supporting share market to maintain sustainable growth,” he said.

He also said modernization in trading at the stock market, increase in newcomers and hope of a positive political course held by investors will support further gains in the share market in the coming days.

Stock Brokers´ Association of Nepal President Narendra Raj Sijapati told Republica that the market will see higher growth this year ruling out chances of a freefall.

“The market has already headed toward a bullish trend. We are entering a year which has been greeted with better macro economic prospects that has upheld investors´ sentiments,” he added.

Source:myrepublica.com, 3rd Jan 2013
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 Nepal's future looks bright but not without challenges

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Nepal's future looks bright but not without challenges

KATHMANDU, JAN 02 -

 

Who would have imagined a decade ago that one could book air or movie tickets from a mobile phone ? Who would have thought migrant Nepali workers could send remittance on a phone ?

All this, and much more has happened in last one decade, thanks to the advancement in the domestic information and communication technology (ICT) sector. Digitisation of the economy is under way.

 

However, Nepal still has miles to go. It is at the 137th position (2012) in the ICT Development Index, as per the International Telecommunications Union, a UN body for global telecommunication matters. It clearly shows no matter how much advancement Nepal has made in the ICT sector, other economies are advancing at a faster pace. 

 

The progress made so far has been driven by the private sector. Despite being located between two fast growing economies—India and China—Nepal has failed to take advantage. The northern neighbour, China, dominates the global ICT hardware trade, while the southern neighbour, India, is known for software development and is known as one of the best destinations for business process outsourcing (BPO). 

 

“Compared to hardware, we can do far better in BPO and software development, mainly for clients looking for a cheaper labour destination,” says Binod Dhakal, president of the Computer Association of Nepal (CAN). “In the case of utilising ICT for development, the country is yet to exploit its true potential.” 

 

According to a study carried out by the CAN, the Nepali IT industry was worth $42 million in 2008, with an average annual growth rate of 8 percent. 

 

There is no any exact data on the size of investment and IT sector’s contribution to the economy, but based on the CAN study, it can be estimated that the IT industry has an estimated turnover over $110 million now, including hardware/software trading and BPO exports. 

 

Progress and Potential

ICT has become an integral part of one’s daily life. And, it is not only the private sector that is going hi-tech, but also the government is gradually adopting online service delivery systems. Some examples include online company registration launched by the Company Registrar Office, use of ICT in the issuance of voter ID cards and recording their data during the Constituent Assembly elections, and adoption of e-tendering.

 

 The Ministry of Information and Communications has formed a taskforce to carry out a feasibility study to develop the country as a free WiFi zone. The panel under the coordination of Mahesh Prasad Adhikari, board member of the Nepal Telecommunications Authority, has been given 30 days to complete the study. It will suggest the government on funding and technical requirements for the scheme. 

 

Also, under its ICT Development Project, the Department of Transport Management is gearing up to implement electronic driving licence and blue book system. 

 

Basically, the local market is considered as the consumer of services produced in the international market. But this notion is changing. Innovative services like CahOnAd (smart phone application) have been successful in attracting global attention, while a number of BPO firms have successfully attract businesses from developed economies like the United States, the United Kingdom, Australia and Japan. 

 

With the entry of the private sector operators a decade ago, the domestic telecommunication market has grown notably. Mobile telecom service, which used to be considered luxury until a decade ago, has now become a necessity. Moreover, the convergence in technology has helped use mobile devices for multiple services like mobile banking and payments.

 

In the local context, this has become possible due to a significant rise in the number of smart phone and data users, according to Bhesh Raj Kanel, former chairman of the Nepal Telecommunications Authority (NTA). As of October 2013, mobile phone penetration rate of the country has increased to 72 percent. 

 

Development of innovative mobile applications within the country suggests how big the potential of mobile technology is. Although the local market is far behind in the hardware segment, in terms of BPO, software and mobile applications, it holds huge possibilities. 

 

About four months ago, CashOnAd was launched, raising eyebrows of not only domestic but also international marketers. The smart phone application has revolutionised market segmentation and targeting. CashOnAd has so far recorded 90,000 downloads. What is more interesting is the application offers Rs 1 for watching a commercial that plays on the smart phone screen every time a call rings.

 

The developer has said it will take the product to the global market by this year. “We are targeting to reach around 70 countries and record 5 million downloads within 2014,” said Biswas Dhakal, president of CashOnAd.

 

Domestic IT forms, which mostly focused on outsourcing, have started to get demands from the domestic market as well, especially for smart phone applications. For an instance, BrainDigit IT Solution, which was originally started as a BPO in 2007, now also serves the domestic market. “BPO is just another business for us as we have started focusing on the local market as well,” said Nitesh Gorkhalai, business development director of the company. He said the company is set to launch two new concepts on product and service promotion—Predicting Game and Ramailo Mart.

 

The progress in the overall ICT in the country is mainly driven by the private sector, while the government has not been able to catch up with the trend. Even as the government adopted e-governance concept in 2006, the results so far have been negligible even as the time has come to move from e-governance to m-governance.

 

 IT Park in Banepa built around a decade ago has failed to yield desired fruit. “The sector is one of the most neglected one by the government,” said Biplov Man Singh, chairman of the ICT Development Committee of the Federation of Nepalese Chambers of Commerce and Industry. 

Given the potential in the BPO sector, Singh said the government should first encourage local firms by giving incentives like tax waivers and addressing problems like load-shedding. 

 

Although the majority of BPO firms are yet come under the government record, it is estimated they export services worth $50 million (Rs 5 billion) annually, according the CAN. 

A study carried out by the then High Level Commission for Information Technology in 2004, BPO exports stood at $7.2 million annually, with an average annual growth rate of 20 percent. 

 

Currently, the global outsourcing market is worth over $90 billion, with Indian and the Philippines being the major BPO hubs, according to media reports. 

 

Since Nepal’s workforce is cheaper, the BPO sector has a huge potential for earning foreign currency and generating employment.  

 

There are an estimated 200 firms involved in the BPO sector. However, around only a dozen are visible in market. Also, hardly 50 such firms are registered with the government authorities concerned. 

 

Although the CAN annually organises SoftTech, an event to promote BPO firms and software developers, participation is very low, says CAN President Dhakal. 

 

Even as the government has listed BPO and software as exportable items, both the government and the private sector have failed to promote the country among global clients. Last year, the government had assured of bringing a separate policy to help promote the BPO sector. But the despite formation of the IT Council headed by the Prime Minister and a separate IT Department under the Ministry of Science, Technology and Environment, no progress has been made on this front.

 

CAN President Dhakal said the government has failed to abide by its own policy. “The policy is perfect, but there is no action plan to move ahead,” he said. 

 

Be it finance, health or education, every sector is related to IT one way or the other. At the same time, technology is changing every day. To catch up with the fast changing trend and capitalise on its potentials, the authorities concerned have to be more proactive and change the rules and regulation accordingly. In Nepal, ICT issues are looked after by agencies like Ministry of Science, Technology and Environment, Ministry of Information and Communications and the NTA. 

 

Sudhir Parajuli, CEO of Subisu Cable Net, said convergence in technology has made it possible to provide data, voice and video services from a single cable. “But we are required to take separate licence for all these services,” he said.  His company is providing cable TV service and internet service from the same cable, but has acquired two separate licences.

 

There is still confusion regarding the jurisdiction of the Communications Ministry and the Technology Ministry. The IT Department is under the Technology Ministry, but areas like voice and data service and IP TV falls under the sector is being governed by the Communications Ministry. 

In a bid to formulate policies, the IT Council was formed but it too has failed to accord priority to the sector. “HLCIT was at least trying to move gradually building local and international relations,” says Dhakal, adding the policy-level confusion and the government’s negligence has badly affected the sector.

 

Source: ekantipur.com, 2nd Jan 2014

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Mobile Devices have high demand in Nepal

KATHMANDU, JAN 02 -

Information and Communica -tion Technology (ICT) products, which used to be considered luxury a few years ago, have now become an integral part of our working and living environments.
The hardware market, which was limited to the personal computers and certain utility accessories, has been taken over by portable wireless devices with multiple functions.

First it was personal computers (desktop) which took the market by storm. Then came laptops enhanced with portability and flexibility. With the advancement in mobile communication and availability internet on-the-go, tablets and other mobile devices are now threatening laptops, globally.
Even in the domestic market, the demand for tablet computers has grown significantly. Features like removable keyboards, high-resolution screens and memory on par with laptops, portability, ease of use, gaming, and other features similar to smartphones have helped attract customers.

Traders say the increasing demand for the wireless portable devices in Nepal is driven by the fact that they offer longer battery backup. “Due to this reason, the demand, mainly laptops and tablets, has jumped multifold,” said Binil Bajracharya, general manager of Nepa Hima Trade Link.

Amulya Gurung, marketing manager of Nagmani International, said desktops are still in demand from business users. He said people who want to do office work “comfortably” still consider desktops. “However, laptops and tablets are gaining popularity, mainly among individual users, as they offer longer battery backup,” said Gurung, adding the latest tablets run for up 14 hours on a single charge. Nagmani International sells desktops, laptops, NAS (a server device) and other ICT accessories from global brands including Asus, Transcend, HP and Asustor.

The latest from the Asus stable the company is selling is an all-in-one touch-screen laptop.
The company is launching Asus Vibo Book at the CAN Info-Tech being held from January 2-7. The product features a touch-screen and is powered by fourth generation Intel Core i7 processor.
The company is also featuring on-to-go (OTG) pen drive at the exhibition. Gurung said the 8- GB pen drive will allow accessing the stored data directly on smartphones.

Besides laptops and tablets, traders are also offering the latest networking-related products. These include the optical fibre, video converter and routers, among others. Arun Bansal, chairman of Hi-Tech Engineering, said the market for networking-related products is expanding with the rise in the number of users. Hi-Tech sells Digicom branded broadband and ADSL routers.

At CAN Info-Tech, Hi-Tech is showcasing routers in the Digicom Zing series. Bansal said the new product, developed using next generation central processing unit, ensures high-speed internet. He said the product will be available in 150- and 300-mbps variants.

Apart from products from the existing brands, traders are also launching new brands. Sagar Group will be showcasing new smartphones and tablets from a European brand. According to an official of the company, it will open bookings for the products during the expo.

 The 20th CAN Info-Tech, aimed at promoting ICT-related products and services,
features 221 stalls. CAN General Secretary Amrit Pant said the exhibition will focus on promoting ICT products as one of the fundamental needs of the people.

Source:ekantipur.com, 2nd Jan 2014
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New Gadgets to be Launched in Nepal in 2014

KATHMANDU , JAN 01 -

With the year 2013 making shift to 2014, several gadget companies are lined up for new launches of the latest innovative products to woo prospective buyers. Local distributors of smartphones, tablets, phablets and ultra books, among others, are all set to introduce various new products in 2014. Here is the low down on some of the gadgets

Asus Vivobook S451LB & Vivobook S 551 LB

Nagmani International, authorised distributor of Asus products in Nepal, will be launching a new model of Ultra Book—Asus Vivo Book S451LB—at CAN Inchfo Techon January 2. The Ultra Book which comes with full metal body and touch screen features fourth generation core i5 processor, 4 GB RAM, 2 GB graphics Nvidia 740M and 500 GB hard drive. Amit Sharaf, director at Nagmani Inchternational, said that the new device looks attractive as it has a full metal body that will also protect the device from physical damages. He also claimed that it will be the first 14-inch Ultrabook with touchscreen and DVD-RW in the domestic market. The company has fixed the price for this Ultrabook at Rs 102,900. The company will also be launching Vivobook S 551 LB under the ultra book series. The 15-inch Ultra-book features fourth generation core i7 processor, 8 GB RAM, 1 TB hard drive with full metal body. The device is priced Rs 106,900.

Colors X Factor Tab

TeleTalk Nepal, authorised distributor of Colors mobile and tablets in the domestic market, will introduce X Factor tab with Quad Core processor by February 2014. Sachin Udas, marketing head of the company, said that this model armed with a very fast processor will offer a rich gaming experience in the tablet sector. The tablet comes with 1.2 GHz Quad processor, 1 GB RAM and 8 GB internal memory. The company said the tablet will cost approximately Rs 18,000. Similarly, the company will also introduce upgraded version of Colors Pearl Black series with Octa Core processor which features 2 GB RAM, full HD graphics. This smart phone has 13 mega-pixel rear and 5 mega-pixel front facing cameras. It is priced at around Rs 36,000.

Nokia Lumia 1520  

Neoteric Nepal, authorised distributor of Nokia products, is all set to launch Nokia 1520 fablet in the domestic market by mid-January 2014. Aayush Shrestha, the company’s marketing manager, said that this advanced model of fablet among the devices running on the Windows platform. It features the biggest screen of six inch, high resolution at 1080P which comes with the fastest processor Qualcomm’s Snapdragon 800 of 2.2 GHz and 20 mega-pixel camera.

Samsung Grand 2

International Marketing Services, authorised distributor of Samsung mobiles in Nepal, has said that it will introduce Samsung Grand 2 by the mid-January 2014. The phone comes with 5.25 HD screen, Quard Core 1.2 GHz processor, 1.5 GB RAM and 8 GB internal memory which is expandable up to 64 GB . With the latest Android OS v4.3 Jelly Bean operating system, the device features 8 mega-pixel rear and 1.3 mega-pixel front cameras. Geo tagging, face and smile detection, image stablisation and touch focus among other features.

LG G Pro Lite and G2  

The sole authorised distributor of LG electronics in Nepal, CG Electronics, is set to introduce LG G Pro Light within January. Ramesh Shrestha, General Manager of CG Electronics, said that the new device will treat gadget lovers with latest features. The G Pro Lite comes with features such as 5.5 inch IPS LCD capacitive touchscreen with multi-touch function and runs on Android v4.1.2 Jelly bean operating system. It has got 8 mega-pixel rear camera and 1.3 mega pixel front facing camera. The other device G2 too runs on the same platform and boasts features such as 5.2 inch LCD capacitive touchscreen with multi-touch function and corning gorilla glass 2. G Po Lite is expected to cost around Rs 36,000 and G2 at Rs 80,000.

Source:ekantipur.com, Jan 1st 2014
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Business Process Outsourcing yet to be fully exploited in Nepal

KATHMANDU, JAN 02 -

 

Business process outsourcing ( BPO ) is not new in Nepal. It’s been almost a decade since the domestic IT sector saw the emergence of BPO firms.

Since then, the sector is growing, albeit slowly. Although exact data is hard to find, it is estimated there are over 200 large and small BPO companies operating in Nepal, offering employment to more than 3,000 individuals.

 

GeoSpatial Systems, Serving Minds, Yomari Inc and D2Hawkeye (now known as Verisk Information Technologies) are the pioneers when it comes to establishing the BPO business in Nepal. 

Now, Verisk Information Technologies, DeerWalk Services and BrainDigit IT Solutions are known as the leading players in domestic BPO sector.

 

Industry insiders say some of these BPO companies’ have a “huge” annual turnover. According to CP Adhikari, coordinator of the Software and BPO Sub-committee at Computer Association of Nepal (CAN), the sector is estimated to have an annual turnaround of more than Rs 5 billion.

Analysts forecast the global BPO market will be worth $93.4 billion in 2015, up from $71.92 billion in 2010, with India, China and the Philippines being the leading BPO hubs.

 

Although software outsourcing has become a substantial sector by now, the failure of the government to recognise this sector 

has caused a big loss for the economy. 

 

“The government seems more focused on the exports of products. If the government succeeds in recognising the software outsourcing business, it might turn into one of the best exportable items for the country,” said CAN President Binod Dhakal.

 

Those involved in the business say software outsourcing is still at nascent stage in Nepal compared to countries like India, China, the Philippines and Costa Rica. But the competition has already intensified within the country among the outsourcers. Brajesh Nepal, chief executive officer of Media Guru, said there are many professionals who silently operate as an outsourcing company limiting themselves to four walls. “Since this job is done purely through the internet, there are companies which prefer silence,” said Nepal.

 

Though the outsourcing business has a huge scope, Nepali professionals are mostly focusing on outsourcing websites, HR-related software, SMS gateways and mobile phone applications, among others. There are also exceptions, however. A few companies have managed to serve the likes of Disney and Windows, among others.

 

The outsourcing sector has also turned into one of the best for jobs. Starting from Rs 15,000 for starters, there are young managers who draw Rs 150,000-200,000 a month. “There are examples of a 20-year-old fetching up to Rs 150,000 a month which is huge compared to what even best of the corporate offices in the country offer,” said Pradeep Timilsina, senior system engineer at Syntegrate, a software outsourcing firm.

 

Mostly, software outsourcing firms are paid on hourly, monthly or project basis, and the pay starts from $10-15 per hour and goes beyond $5,000 per project, depending on the nature of the project. 

What makes the outsourcing business lucrative business in Nepal is the fact that international companies can save up to 70 percent of labour costs compared to their home countries. 

“If an American company develops software in its own country, the cost of production will be much higher as compared to Nepal,” said Nepal, adding countries like Vietnam, Cambodia, the Philippines, Myanmar and China have hugely benefited from software outsourcing, and even Nepal too can benefit from it, but a serious government effort is needed. 

 

Despite the industry coming to a substantial position on its own, the lack of a government policy has prevented the sector from getting the required exposure. “A huge chunk of money is getting unaccounted due to the absence of a policy,” said Nepal, adding the government should try to incorporate the sector in legal books with appropriate incentives.

 

One of the professionals seeking anonymity told the Post that numerous companies in Nepal are operating by getting registered as Indian companies. “Since it is easy to get big projects if established as an Indian company, there are many who are doing so,” the professional said, adding the trust factor is there, but the lack of a proper legal framework in Nepal is also prompting professionals to register their companies in India.

 

Biplov Man Singh, chairperson of the ICT Development Committee at the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), said the government should come up with schemes to bring out these companies locked within four walls. 

 

 “Like in India, the government can bring down corporate tax for such companies to zero percent and only charge income tax for around five years,” said Shakya, adding this will help expose hidden companies.

 

Source: ekantipur.com, 2nd Jan 2014

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Service Sector is Highest Tax payer in Nepal

KATHMANDU, Dec 31: Nepal Telecom (NT) became the largest contributor to income tax in fiscal year 2011/12, paying Rs 6,015 million. Given the sluggish performance of the manufacturing sector, the service sector has dominated the top-10 list of largest contributors to income tax, according to a confidential source.

Ncell-- a multinational telecom firm--became the second largest income tax contributor, paying Rs 4,970 million. The Agricultural Development Bank Ltd ( ADBL) is the largest bank and third largest company, and it paid Rs 1,656.7 million in income tax during the year.

Surya Nepal --an Indo-Nepal-UK joint venture and subsidiary of ITC Ltd--has emerged the fourth largest contribution to income tax, paying Rs 1,654.4 million.
Surya Nepal is involved in manufacturing and marketing cigarettes as well as readymade garments in Nepal, besides exporting the apparel.
At a time when the country is facing a yawning trade deficit and a slowing manufacturing sector, Surya Nepal became the largest manufacturing industry. The fifth to 10th positions have been secured by commercial banks.

Foreign joint ventures Nabil Bank-- the first foreign joint venture bank in the country, Nepal Investment Bank and Himalayan Bank secured fifth, sixth and seventh positions, contributing Rs 1,150 million, Rs 1,050 million and Rs 847.2 million respectively. Two other joint venture commercial banks--Everest Bank and Standard Chartered -- are eighth and ninth ranking contributors, paying income tax of Rs 847 million and Rs 730 million respectively.

State-owned commercial bank Rastriya Banijya Bank stood in 10th position, paying income tax amounting to Rs 620 million.
As per existing law, banks, corporate houses and industrial entities have to pay 30 percent, 25 percent and 20 percent respectively of their profits as income tax. Only Surya Nepal--the sole firm from the manufacturing sector--being included in the top income tax-payer list, highlights the weak contribution of this sector to the national coffers.

Data compiled by the Central Bureau of Statistics (CBS) shows the growth of the manufacturing sector limited to 3 percent in 2010, 4.1 percent in 2011, 3.6 percent in 2012 and a projected at 1.8 percent for 2013.

With the manufacturing sector slowing down consistently, its contribution to Nepal´s gross domestic product (GDP) has been hovering between 6.7 percent and 6.9 percent over the last five years.

However, the service sector´s contribution to GDP stood at 49.5 percent during both fiscal years 2011 and 2012, while 50.6 percent contribution is projected for 2013. “Significant reforms in policies effected in the service sector over two decades are the major factor behind the mammoth growth of this sector and its contribution to national revenue,” Dr Chiranjibi Nepal, Chief Economic Advisor of the Ministry of Finance, told Republica on Tuesday. Contribution of the service sector in the global economy hovers around 70 percent.

Source: myrepublica.com, 31st Dec 2013
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