TWO DEAD, 18 INJURED IN RUKUM BUS ACCIDENT

TWO KILLED, 18 INJURED IN RUKUM BUS ACCIDENT
Kathmandu, 14 Feb.: Two persons were killed and 18 otherswere injured
when a bus fell 50meters off a road in Rukum Tuesday.
The bus was plying locally from district headquarter Khalangha.
A woman died instantly and another person died while undergoing treatment at district hospital.
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CAPITAL MINIMUM TEMPERATURE 3.8 DEGREES CELSIUS
Kathmandu, 14 Feb.: Minimum temperature recorded in the capital Tuesday was 3.8 degrees Celsius.
Mercury soared to 20.7 degrees Celsius in the afternoon.
The afternoon was sunny.
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REVENUE COLLECTION SHORT OF TARGET
Kathmandu, 14 Feb.: Although the government’s revenue collection surged in the sixth month of the current fiscal year, the collection could not continue the growth momentum in the following month, The Kathmandu Post reports.
As of February 3, total revenue collection stood at Rs 118.94 billion against the target of Rs 131.25 billion until mid-February, according to the Ministry of Finance (MoF). Ministry’s spokesperson Rajan Khanal said they had targeted to collect at least Rs 128 billon by mid-February.
Until mid-January, the collection was at Rs 111 billion against the target of Rs 112.93 billion. This suggests poor collection in the seventh month.
Due to poor collection of non-tax revenues such as royalty and dividends, particularly from state-owned enterprises, overall revenue collection was massively short of the target until the fifth month. But as non-tax revenues surged in the sixth month, the difference narrowed down. However, the growth could not sustain in the seventh month. “The revenue could not meet the target as of the seventh month, as the collection from customs and non-tax revenues were lower than expected,” said Khanal. According to him, the collection from customs was affected by the recent election in Uttar Pradesh of India as the border was sealed for two days then. However, the ministry is confident that the overall target will be met. The government aims to collect revenue worth Rs 241.77 billion this year. The collection fell Rs 16 billion short of the target last fiscal year.
Meanwhile, the capital expenditure of the government is still not encouraging. As of February 3, capital expenditure stood at Rs 9.39 billion out of the budgetary allocation of Rs 72.60 billion. “Compared to last year, capital expenditure this year is satisfactory,” said Khanal. Finance Minster Barsaman Pun has been saying that he is not satisfied with the capital expenditure. The ministry also recently announced that it would take action against project mangers if they failed to yield desired result in expenditure.
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RS1B PENALTY ON 265 FIRMS
Kathmandu, 14 Feb.: The Inland Revenue Department (IRD) slapped penalties of more than Rs 1 billion on 265 businesses during its latest anti-tax evasion drive, in which it monitored 2,100 firms from February 9 to 10 across the country, The Kathmandu Post reports.
As reports from several Inland Revenue Offices (IROs) are yet to come, IRD officials estimate a further rise in the penalty amount.
Over the two days, monitoring teams forced 50 businesses to register with permanent account number (PAN), 22 with value added tax (VAT) and other 23 to pay rental tax. They also asked three firms to come under the excise duty net.
Penalties slapped on 174 firms not filing value added tax (VAT) and income tax accounted for half of the total penalty amount. “The department has directed 12 firms to furnish their account details as their transactions were suspicious,” said IRD Director Buddhi Ram Dhital.
IRD mobilised about 350 of its staffers for this campaign. Sixty teams were mobilised in the Valley-47 in Kathmandu, 13 in Lalitpur and Bhaktapur. Outside the Valley, the teams were mobilised in Bhadrapur, Biratnagar, Dharan, Lahan, Birgunj, Hetauda, Bharatpur, Pokhara, Butwal, Bhairahawa, Krishnanagar, Nepalgunj, Dang, Dhangadhi and Mahendranagar.
IRD Director General Tanka Mani Sharma said the rationale behind this drive was to increase tax compliance by increasing awareness among taxpayers and the general public.
The department plans to conduct such monitoring campaign once a week, beginning mid-February. It seeks to monitor 25,000 firms by the end of the current fiscal year. “We received positive feedback about the first phase of the campaign during its review meeting,” said Sharma.
According to Sharma, IRD will be more specific in upcoming monitoring campaigns. “Monitoring will be carried out in specific areas such as academic institutions, hotels and restaurants, liquor segment, medical institutions and trading, among others,” said Sharma.
IRD has also started crackdown on taxpayers not clearing their liabilities, suspending their bank accounts, businesses and fixed assets. The department started its tax recovery drive last month after outstanding tax dues began piling up for a long time and reached more than Rs 24 billion. According to IRD, outstanding income tax and excise duty amount to Rs 20 billion and the rest consists of VAT and TDS (tax deduction at source).
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GOVT. BRINGING NEW LAWS TO BOOST INVESTMENT
Kathmandu, 14 Feb The government is preparing to revise, replace and formulate around half a dozen laws including Industrial Enterprise Act (IEA) to make them in compliance with the Industrial Policy 2010 and offer new favorable legal framework to investors in the Investment Year
2012/13, Bhoj Raj Poudel writes in Republica..

The Ministry of Industry (MoI) is working on amendment in IEA 1992 and Company Act 2006, and replacement of Nepal Standard (Certification) Act 1980, tuning them in line with the new Industrial Policy.

Likewise, it is formulating a new Nepal Accreditation Board Act, which will pave the way for establishment of an accreditation authority that will certify quality and standards of Nepali goods and services for exports.

“The existing Acts related to enterprises, establishment of companies and standards were formulated long before the new Industrial Policy. Hence, amendments are being worked out to make them in sync with the new policy,” Joint Secretary at MoI, Yam Kumari Khatiwada, told Republica on Monday.

The new Act on Nepal Accreditation Board, meanwhile, is being formulated as per the long time demand of the private sector.

So far, the ministry has prepared a draft of the revised IEA and circulated it among the stakeholders for consultation. “We will submit it to the Council of Ministers for endorsement once we incorporate the feedbacks received from all concerned,” she said.

Unlike the past, when a new would focus solely to serve the policy, the new amendments would also take into account government´s latest drive to lure more foreign investments, particularly in the upcoming investment year, and incorporate special provisions to make it more investment friendly.

Nepal Standard (Certification) Act would be completely replaced because it was formulated way back in 1980 and has turned obsolete amid changes in the way standards have been defined across the globe. “The new Nepal Standard Act 2012 that will replace the existing Act will help to accelerate promotion of Nepali products in the international market,” Khatiwada stated.

The Ministry has already initiated the process to draft the Act, but it is yet to give it a final shape.

New amendments in the Nepal Company Act 2006 are expected to make the Industrial Policy more functional.

Once new laws are put in place, MoI hopes the country to have a better investment climate. However, they will still not be able to address labor and security related problems that have been driving away the investors.

Moreover, the government will soon set up a new office to deal with Intellectual Property Right (IPR) issues. “A process for this has already begun,” said Khatiwada, elaborating that the office is being set up as per the new IPR policy. The ministry is also leveraging efforts to make effective the policy provision of single-window service for all business activities.
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UNILEVER MANAGEMENT, WORKER TALKS TO SETTLE DISPUTE
Kathmandu, 14 Feb.: The government has called on protesting workers and management of Unilever Nepal for another round of meeting in Hetauda on Tuesday after Makwanpur Chamber of Commerce and Industries expressed interest in playing a mediatory role in settling the wage-related dispute in the multinational company, Republica reports.

After first round of talks at the local level last Friday failed to yield positive results, it was widely expected the meeting between the parties in dispute would be held at the central level in Kathmandu with Department of Labor playing the lead role.

But since the government is keen on strengthening the role of local level committees in settling industrial unrest, it had decided to hold another round of meeting at the Labor Office in Hetauda.

The government has recently formed labor relation reform committees in local level as well, which is responsible for bringing all parties in the workplace dispute to the table for talks.

“Since these committees also comprise of officials or members of government, employers´ organization and trade unions, we are trying to mobilize these units in settling industrial disputes at local level, rather than the central committee intervening in the initial phase,” a reliable source of Ministry of Labor and Transport Management said.

“If the committee fails to achieve a breakthrough, we will mobilize the labor department to settle the dispute.”

The Basamadi-based factory of Unilever Nepal has remained closed since last week after the workers launched a strike demanding 50 percent hike in salary and allowances, interest free housing loan of Rs 1 million per person and house maintenance fee of Rs 100,000 per person per year.

The Unilever management has said the demands were placed at a time when the total remuneration of staff was raised by 69 percent between 2009 and 2011, as against rise in company´s profit of 37.3 percent in the same period.

In order to avoid adding further financial liabilities, the management of Unilever, meanwhile, has sought the government´s permission to ´lock out´ it own unit. As per the Labor Act, the management of any company can padlock its units after getting approval from the government in case workers launch a strike without informing the management or talks led by Labor Office to settle disputes fail to yield results.

Once such application is approved, the management will not have to bear the burden of providing salaries and other benefits to workers during the period when units remain close.

But a source told Republica the government may not grant such permission as the protest was launched in a legal manner by placing demands in the first week of Nov. Since that time 21 rounds of talks have taken place between the management and workers.

Meanwhile, the Federation of Nepalese Chambers of Commerce and Industry has shown concerns about the closure of Unilever Nepal. In a press statement, the apex private sector body has said the ongoing strike by laborers would send a negative message, especially at a time when the private sector is working closely with government to promote investment in the country.

“The growing proclivity to shut down the multinational companies which are paying off comparatively better wages is going to drive away the foreign investment,” the press release says. The incident has raised doubts on drawing foreign investments in the Investment Year 2012/13 declared by government, the release says.
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PM SAYS HE’LL LEAD A CONSENSUS GOVT





Kathmandu, 14 Feb.:
Prime Minister Dr. Baburam Bhattarai Monday claimed that the current government would take a shape of national consensus government under his leadership, Laxmiraj Poudel/Ekraj Giri report in The Rising Nepal from Pokhara.
Premier Dr. Bhattarai said that the government would not step down until the government completed the peace process and constitution writing.
Bhattarai made these remarks while addressing the 17th People’s Revolution Day at Amarshingchaur in Pokhara.
He expressed his confidence that the current government would be able to incorporate other dissatisfied political parties and senior leaders from UCPN-Maoist party.
Dr. Bhattarai claimed that the country would be able to promulgate at least a draft of the new constitution within the stipulated timeframe.
"I will not resign from the post and will not run away from the responsibility to write the new constitution," Premier Dr. Bhattarai said.
Referring to the last extension of the term of Constituent Assembly, Dr. Bhattarai said he saw little chances for adding the term of CA further. He said the government was committed towards drafting the new constitution within the extended deadline.
In another context, Prime Minister Dr. Bhattarai informed that the government had directed the Nepal Army Headquarters to prepare a working plan to begin the process of integrating the People’s Liberation Army fighters who opted for army integration.
"One of the important and major tasks of army integration prior to writing the new constitution will begin within a week," Bhattarai said.
Talking about the issue of the People’s Revolution Day, Dr. Bhattarai said his party had just moved ahead towards the path of ‘peaceful revolution’ from an ‘armed revolution.’ He said that current phase and face of revolution had only changed in form.
Prime Minister Dr. Bhattarai also informed that the government would establish the commissions on peace and reconciliation and disappearances.
He also claimed that the path of peace and constitution was the correct path taken by the country.
At the same function, member of Maoist standing committee Amik Sherchan rejected the recently submitted report of the State Restructuring Commission and said the issue of SRC could be resolved through legislature parliament.
Sherchan said the report of the commission had not incorporated the aspirations of all general public and was against national aspirations.




PRACHANDA THREATENS REVOLT
Kathmandu, 14 Feb :UCPN-Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ Monday warned that his party might opt for people’s revolt if the chances to deliver a people-oriented
constitution were aborted, The Rising Nepal reports.
"To celebrate People’s War Day means to recongnise people’s right to revolt. And we will revolt if the present situation fails us to make a pro-people constitution as there are plots to revive the 1991 constitution," the chief of main ruling party said addressing a mass meeting organized to mark the 17th People’s War Day here at the Open Air Theatre.
He said that along with achievements of People’s War both the peace and constitution processes were still in trap despite his party’s utmost efforts and commitments to conclude both the processes in the stipulated timeframe.
"The peace and constitution building processes are at the final stage. It is not clear whether the people or the people’s enemies will come up victorious," he said.
"I have been saying that more than the court (Supreme Court) verdict, we are concerned with the verdict of the people. We are working that both the processes are taken to their conclusions by the set time," said the former prime minister.
Hinting at different blames heaped against him in course of the internal struggle, the Maoist chairman urged

his deputies, specially the dissenting faction, to not taint him as his stature was a creation of the war and to which all his deputies had contributed.
"Leadership should be corrected by criticism but a constructive criticism does not aim at damaging the leadership itself. Everybody should know leadership is not made overnight and in vacuum," he said.
He argued that a true statesman was the person who was also the leader of the toiling class, the proletariat.
Prachanda claimed his party unity was rock solid despite long-running ideological debate.
Addressing the assembly, Maoist senior vice-chairman Mohan Baidhya ‘Kiran’ said that the imperialist and expansionist oppressions had intensified while his party was unable to work for the people although it was both in the government and the parliament.
"We are making our best efforts to meet the people’s expectation. But we are failing, and this has forced us to think seriously," the key figure of dissenting faction said.
He vowed the party would jump to people’s revolt if there was no pro-people constitution. "UCPN-M is the party of the Nepalese proletariat and the toiling masses. It will continue revolution at least until the new people’s democracy is established.
That is what we promised when we initiated people’s war 16 years ago."
Saying that a party was a unity of the opposites, he termed internal strife normal. "Our party has slightly gone wrong, not totally wrong.
We urge our chairman to be the leader of the new democratic revolution, not limit himself to be a statesman alone".
Kiran made it clear that the Maoists would not split as expected by the reactionaries. "Our enemies have two strategies, either to push us toward reformism and parliamentarianism or finish us with repression by causing split in us."
Echoing Prachanda, Kiran also warned of revolt if his party was betrayed.
Maoist Standing Committee member and Finance Minister Barsha Man Pun said he was ready to give up his post in the government if that helped consolidate unity in the party.
Different cultural performances made the programme lively as the artist of the cultural groups like Samana danced and sang in interval of the speakers.
The Maoists organized mass gatherings across the country to mark the PW Day.
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FULL HOUSE AMENDS CA PLAN
Kathmandu, 14 Feb.: A Constituent Assembly full House meeting today [Monday] unanimously amended its work plan without changing the May 27 deadline as recommended by yesterday’s Constitutional Committee meeting, The Himalayan Times reports.

As per the amended plan, the new calendar of operation has not fixed specific timeline to complete certain tasks of the constitution drafting to free the parties from procedural hassles. This is the third amendment to the work plan after the CA’s term was extended by six months in November last year.

Although the amended work plan does not fix specific timeline, the CA’s Business Advisory Committee, which is led by CA chairman and represented by all the parties in the CA, is mandated to prepare internal timeline for certain tasks so as to pressure the parties to settle the remaining issues, sources said.

Earlier, a meeting of the Business Advisory Committee today mandated the Problem Resolution Sub-Committee led by UCPN-Maoist Chairman Pushpa Kamal Dahal to settle the unsettled issues by February 22.

“The committee’s decision will create a pressure to leaders to find consensus at the earliest. The committee will assess the progress on the dispute resolution time to time,” said Nepali Congress chief whip Laxman Prasad Ghimire.

As per the earlier work plan, the Constitutional Committee of the CA was mandated to settle the remaining tasks by yesterday and send the unsettled issues to the full House of the CA to finalise them through voting process. The full House was supposed to settle the issues through simple majority vote and forward the same to the CC to prepare the first draft of the new constitution.

The CA full House, however, should endorse each Article by a two-third majority while passing the new statute.

A meeting of three political parties, on Saturday, decided to amend the work plan. The parties are yet to build consensus on federalism, forms of governance and electoral and judicial system.
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NEPAL MAY AVOID BLACKLISTING
Kathmandu, 14 Feb:Nepal might escape black listing as the Parliament is planning to pass the three key Bills that are key in fighting flow of dirty money, on
Friday, The Himalayan Times reports.

Despite UCPN-Maoist lawmakers boycott today, the government tabled three Bills — Mutual Legal Assistance Bill, Extradition Bill and Bill Against Organised Crime — that are among Nepal’s major commitments to the global anti-money laundering watchdog Financial Action Task Force (FATF) in fighting money laundering.

The FATF is meeting in its headquarters in Paris from today to take stock of member countries’ and territories’ progress on their commitments in joining hands globally in fighting money laundering and terrorist financing and will decide the fate of Nepal on Friday, the day Parliament has set to pass the Bills.

“We wanted the government to take a shortcut route and pass the Bills today,” said opposition Nepali Congress chiefwhip Laxman Ghimire. However, the lawmakers of the party that is leading the government opposed the Bills fearing that they could be used against the UCPN-Maoist in future.

The three Bills under the UN Convention are very important for Nepal to pass to escape the blacklisting. Currently, Nepal is in the risk zone and it has only tow options — in absence of passing of the Bills — either to be blacklisted or downgraded to the high-risk zone costing Nepal dearly.

Nepal had sought one year extension to pass the three Bills by December 2011, after it failed to pass a year ago. Since, the country has ratified key UN Conventions — International Convention for the Suppression of the Financing of Terrorism-1999 and UN Convention Against Transnational Organised Crime — in June 2011, the FATF has agreed on time extension but Nepal needs to prepare Acts according to the Conventions but it has been delayed due to UCPN-Maoist intra-party rift.

In absence of passing of the three Acts, international banks could block the bank accounts of Nepali diplomatic missions abroad apart from dishonouring letter of credit (LC) that would hit imports.

“The foreign grants will be completely halted and the donors will charge high interest on loan as they will switch to commercial loans instead of current soft loans, which will hit the budgetary support,” according to finance secretary Krishnahari Baskota.

“Nepal will be completely isolated from the international financial sector, after the FATF black lists it, as the international community will treat it like the Iran and North Korea — both black listed by the FATF — though the FATF is only the global anti-money laundering watchdog,” he said, adding that Nepal has not touched 33 of the 40 plus nine commitments of the FATF.

The Acts will help Nepal check flow of dirty money and create investment environment, though both the Bills — Mutual Legal Assistance Bill and Extradition Bill — will come into effect only after Nepal enters into a separate agreement with any country. Similarly, to develop healthy financial system and boost international trade and attract Foreign Direct Investment (FDI), the Bill Against Organised Crime will support.
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