MP Mahabir Pun Calls for Reform in Tax Policy to Boost Research and Industrial Growth in Nepal

Kathmandu – Member of Parliament Mahabir Pun has emphasized the critical importance of prioritizing research and innovation to advance Nepal's industrial development and economic growth. During the parliamentary discussion on the principles and priorities of the Appropriation Bill, MP Pun highlighted the need for government reforms in tax policy and intellectual property protection.

MP Pun criticized Nepal’s current tax framework as unfriendly to industry, citing his own experience operating an agricultural tools factory in Birgunj. He pointed out the paradoxical situation where finished agricultural tools can be imported without tax, yet raw materials essential for domestic manufacturing attract heavy customs duties. This disparity, he argued, inflates the cost of locally produced goods and undermines the competitiveness of Nepalese industries.

He urged the government to provide concessions on the import of raw materials rather than luxury goods or finished products, aligning Nepal’s policies with those of developed countries that do not tax raw materials. "When raw materials are heavily taxed, domestic products become expensive, due to which our industries cannot compete," MP Pun stated.

In addition to tax reforms, MP Pun drew attention to the absence of a systematic patent office in Nepal, which hampers the protection of intellectual property rights. He noted that Nepali inventors are compelled to register their creations abroad, a process that is both costly and complex. To address this, he demanded government subsidies to support local inventors and the establishment of a domestic patent registration system.

MP Pun also advocated for tax exemptions for new entrepreneurs and inventors during their initial phases to encourage innovation and business development. He stressed that research initiatives should not be confined to a single financial year but incorporated into multi-year plans and budgets to ensure sustained support.

Highlighting the broader implications, MP Pun asserted that Nepal cannot achieve self-reliance without nurturing domestic talent and technology. He called on the government to concretely address these issues in the upcoming budget to foster a more innovation-driven economy.

This discussion took place amid broader parliamentary debates on fiscal priorities and economic policies, reflecting growing concerns over Nepal’s industrial competitiveness and intellectual property infrastructure.

The remarks by MP Pun underscore the pressing need for policy reforms that balance taxation, incentivize innovation, and protect intellectual property to catalyze Nepal’s industrial and economic development.