article on tax exemption and hydropower

June 3, 2009

Mr Chandi P Shrestha

Former Secretary

Ministry of Home, GoN

Chandijee

I agree only partially with you. Lack of policy consistency is a major problem in Nepal but more serious problem is lack of comprehension about the impact of policy on the macro economy and that is what I have laid bare in my article.

These exemptions are given to attract investment but one needs to understand the macro economic impact. Clearly such exemptions for export oriented projects and projects with foreign investment do not contribute to the macro economy - Nepal losing both ways. When these exemptions were first announced it succeeded in attracting some investment. But continuing with these for ever in the name of consistency doesn't ultimately help the economy. That is the message of this article.

With best regards,



Sincerely,



Ratna Sansar Shrestha,

From: Chandi P. Shrestha [mailto:chandips@hotmail.com]
Sent: Tuesday, June 2, 2009 12:02
To: rsansar@mos.com.npSubject:
RE: My article on tax exemption and hydropower

Thanks for tax article. Lack of policy consistency is the major problem in Nepal.

From: rsansar@mos.com.np
To: ;
Subject: My article on tax exemption and hydropower
Date: Tue, 2 Jun 2009 10:05:57 +0545

जलबिद्युत विकासको लागि कर राजश्व छूटबाट राष्ट्रहित कति ?