Kathmandu: Confederation of Banks and Financial Institutions Nepal (CVFIN), an umbrella body of banks and financial institutions operating in Nepal, has submitted various suggestions to the Ministry of Finance for the budget of the coming Fiscal Year 2079/80. CVFN has suggested that special arrangements should be made to issue broker licenses to the subsidiaries of the bank as well.
Similarly, in order to alleviate the recurring liquidity problem, CVFN should facilitate policy on hedging arrangements for Nepali banks and financial institutions to allow foreign banks and financial institutions to calculate the amount in deposits when borrowing at cheap interest rates from foreign banks and financial institutions. Has been suggested.
Suggestions have been made to increase the existing limit on income tax to a minimum of rupee. In order to remit remittances through banking channels, it has been suggested that Nepalis living abroad should also be included in the social security fund for employment, 10% reservation should be given in IPO and strict method should be adopted for implementation by comprehensively improving the traditional system of capital expenditure and payment.
Similarly, CVFN has suggested that the income tax (corporate tax) paid by banks and financial institutions should be reduced by 30% and maintained at 25% like other businesses. In order to increase banking access, it has been suggested that 10% discount should be given in the rate of tax levied on profits as an incentive for banks and financial institutions to open branches in areas defined by NRB.