KATHMANDU: Nepal-India Chamber of Commerce and Industry (NICCI) has suggested Finance Minister Rameshwor Khanal to form a Foreign Investor Council. During the courtesy call of NICCI President Sunil KC with Finance Minister Rameshwor Khanal at the latter’s office on Thursday, KC suggested to form the council to facilitate foreign investors, appraised with issues faced by the Indian multinationals in Nepal including General Sales Tax (GST) and control of unauthorized trade.
The recent review of GST by Indian government is expected to result into widening price arbitrage (raising grey-channel risk) and improved affordability for impacted formal imports – as price ladder’s shift downwards along with India MRP revisions. India’s 56th GST Council has approved broad rate changes effective from September 22 this year. This rebases India MRPs across several Fast-Moving Consumer Goods (FMCG) lines. KC also highlighted the rise of illegal trade that is bleeding the government coffer. Responding to KC, Finance Minister Khanal said that the ministry will take up the idea of Foreign Investor Council under the Ministry to facilitate the foreign investor.
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