News Digest: Economy & Development (June 17 – 23, 2021)

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Tourism sector becomes fourth largest industry by employment-

An analytical study on tourism released by Central Bureau of Statistics revealed that Tourism is Nepal’s fourth largest industry by employment, providing jobs to 371,140 individuals; representing 11.5 percent of the total labour force involved in all industries across the country. According to the report, the number of people employed in restaurants and food services stands at 243,790, with 76,010 people engaged in hotel and accommodation services, 2,750 people engaged in aviation sector, 17,899 people in beverage activities, and 13,223 people in travel agencies. Similarly, the number of tourism establishments in the country has also increased over the years, with the current establishments standing at 134,832, making up about 14.6 percent of total establishments in Nepal. Moreover, the number of establishments with female managers in tourism industry is the highest among all other industries, with 39.2 percent of total tourism establishments led by female supervisors/head.

KMC to provide special tax discount-

Kathmandu Metropolitan City (KMC) is set to provide special tax discounts to tax payers who have been affected by the COVID-19 pandemic and its subsequent lockdowns. The special provisions as promised by the Policies and Program of KMC for the upcoming fiscal year 2078/79 includes:

  • Landlords who can submit the details and agreement of individuals living in their house on rent at the ward office will be given a discount of 10 percent of the rent amount or NPR 25,000, whichever is less. The same provision has been stipulated for the private sector.
  • Concessions will be provided to the service recipients who pay taxes, service charges, and fines through banking or electronic system.
  • Programs running under Public-Private Partnership (PPP) to get special tax discounts.
  • A new policy to be adopted to provide significant tax discounts to business (hotel and tourism).
  • Details of individuals living under KMC area on temporary basis to be kept in order to make urban service distribution more effective.

Foreign aid commitment increases-

According to the finance ministry, international development assistance pledged to Nepal increased to NPR 202.28 billion in the current fiscal as compared to a commitment of NPR 149.50 billion, in the last fiscal. Out of the commitment, 10.9 percent was pledged as grant assistance and the remaining 89.1 percent was pledged as loan assistance. Similarly, the share of bilateral and multilateral assistance in foreign aid commitment was 4.7 percent and 93.3 percent respectively. Sector-wise, the highest foreign aid commitment was in the road sector at 26.7 percent, followed by energy sector at 22.9 percent, and budgetary assistance at 11.7 percent.

Revenue worth NPR 761 billion raised-

Despite the nationwide lockdown, a total of NPR 761 billion in revenue has been raised. According to the finance ministry, the total revenue mobilization has increased by 25.4 percent, with tax revenue standing at NPR 709.62 billion and non-tax revenue at NPR 51.38 billion; while the total revenue, receipts and other receipts stood at NPR 797.33 billion.

IPPAN urges NRB for refinancing-

The Independent Power Producers Association of Nepal (IPPAN) has appealed to the government to reconstruct and rehabilitate road connectivity and transmission lines that have been heavily damaged due to the recent monsoon floods. Similarly, IPPAN has also urged Nepal Rastra Bank (NRB) to provide refinancing packages, to cover up the recent destructions in their physical infrastructure and transmission lines.

NEPSE increases by 79.44 points-

The Nepal Stock Exchange (NEPSE) index increased by 79.44 points, reaching 2913.84 points as of 22 June. A total of 19.77 million shares of 225 companies was traded resulting in a turnover of 10.28 billion till the third trading day of the week.

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