Nepal-India Chamber of Commerce & Industry (NICCI) today suggested Finance Minister Rameshwor Khanal to form the Foreign Investor Council.

Paying a courtesy call on Finance Minister Khanal, NICCI President Sunil KC suggested forming the council to facilitate foreign investors, apprised with issues faced by the Indian multinationals in Nepal including General Sales Tax (GST) and control of unauthorized trade, reads a statement issued by NICCI. 

The recent review of GST by the Indian government is expected to result in widening price arbitrage (raising grey-channel risk) and improved affordability for impacted formal imports – as price ladders shift downwards along with India MRP revisions.

India’s 56th GST Council has approved broad rate changes effective from September 22 this year. This re-bases India MRPs across several Fast-Moving Consumer Goods (FMCG) lines.

On the occasion, 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. Nepal needs foreign investment to not only create jobs in the country but also to boost the export and expand economy, he said, according to the statement.