Himal Press 
KATHMANDU: Major private-sector organizations have broadly welcomed the budget for fiscal year 2026/27, saying it addresses several long-standing demands of businesses and investors while offering fresh hope for reviving the country’s sluggish economy. They, however, have cautioned that the budget’s success will ultimately depend on effective implementation and prudent resource management.
Nepal Chamber of Commerce (NCC) has said the budget has the potential to raise private-sector confidence and reinvigorate economic activity. NCC President Kamlesh Agrawal described the budget as ambitious but said its successful implementation could usher the country into a new phase of economic prosperity. “Many of NCC’s recommendations have been incorporated into the budget.
The NCC welcomed the increase in the personal income tax threshold to Rs 1 million. It also praised the government for removing excise duties on 360 products and reducing customs duties on 273 industrial raw materials, saying that such measures would support industrialization and domestic production. However, it urged the government to reconsider the newly imposed 5% VAT on electricity and ride-sharing services.
Similarly, the Nepal-India Chamber of Commerce and Industry (NICCI) termed the budget as balanced, reform-oriented, and broadly supportive of the private sector. The organization said the budget attempts to address key concerns related to industry, investment, taxation, and trade facilitation.
It welcomed the decision to maintain lower customs duties on raw materials than on finished products, reduce tariffs on industrial inputs, and eliminate excise duties on hundreds of items. NICCI said these measures would strengthen domestic manufacturing, increase value addition, and improve industrial competitiveness. It further welcomed plans to establish Nepal’s first AI Compute Center in Syuchatar, saying the initiative could help prepare the country for the emerging artificial intelligence era.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Vice President Naresh Lal Shrestha described the budget as ambitious. Speaking at a post-budget discussion organized on Monday, Shrestha noted that capital expenditure remains low and the government is operating with a fiscal deficit exceeding Rs 600 billion. Nonetheless, he said the budget reflects an effort to move beyond traditional approaches. He welcomed the increase in the personal income tax threshold, measures aimed at simplifying investment approvals, the AI Compute Center initiative, and support programs for startups through grants, concessional loans, and co-investment partnerships.
The Confederation of Banks and Financial Institutions Nepal (CBFIN) said the budget has created a new basis for hope and confidence at a time when economic activity remains subdued and private-sector sentiment has weakened. In a statement, the organization welcomed policy and structural reforms aimed at economic recovery, investment promotion, entrepreneurship, digitalization, and infrastructure development. It also praised the government’s proposal to establish a special-purpose National Asset Management Company to manage banks’ non-performing loans and non-banking assets, calling it a timely and forward-looking reform.
The tourism industry has also expressed optimism with the new budget. Hotel Association Nepal (HAN) welcomed the tourism-related policies and budget allocations, particularly the government’s decision to identify tourism as a key pillar of economic transformation. The association said the budget’s emphasis on destination promotion, tourism infrastructure, and private-sector participation could contribute significantly to economic growth, job creation and foreign exchange earnings.
The association particularly welcomed the declaration of Visit Nepal Year 2085 BS and plans for Wellness Year 2027, stating that the initiatives could strengthen Nepal’s international tourism brand and attract higher-spending visitors.
