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Stakeholders have demanded that the tax rate imposed by Nepal on tobacco products should be increased drastically. As part of the ‘No Tobacco Drive’ campaign organized by Annapurna Media Network on Friday, the participants at the ‘Tobacco Symposium’ pointed out that the tax on tobacco products needs to be increased further as it is very low. Experts claimed that if the tax is increased, the price of tobacco products will increase and the ability of people to buy these products will decrease and so will consumption. Since the government also receives more revenue through this step, increasing taxes is considered a ‘win-win’. They argued that increasing taxes will bring the state benefit amounting to billions of rupees if citizens are considered to have economic value. Nepal ranks 19th in the world and tops in South Asia on the list of deaths due to tobacco consumption. However, taxes on such substances are quite low in South Asia, including in Nepal. This rate is not even close to the recommendations of the World Health Organization. In the 'Tobacco Symposium' held on the eve of the budget of the financial year 2080-81, the chief guest, Deputy Speaker of the House of Representatives, Indira Rana Magar, said the use of tobacco products and its ecosystem should be eradicated from the roots. She said the consumption of such substances should be discouraged by increasing the tax so that people cannot buy it. Studies have shown that over 5m Nepalis consume tobacco products.   According to the Nepal Development Research Institute, the number of deaths due to smoking has increased by 60 percent in the last 30 years. A study says that among the nations in South Asia, the death rate due to tobacco products is the highest in Nepal.   Dr Jaya Kumar Gurung, a senior research expert at the NDRI says, “The risks that may occur in the future from tobacco products are high. And our study says 1.34m people will die due to tobacco products in the next 30 years.”   Effects of smoking on organs Senior gyneoncological cancer specialist Dr Sarita Ghimire says that smoking harms all parts of the body. Ghimire says that tobacco products are the main cause of cancer of the blood vessels, heart, lungs, mouth as well as the uterus of women. According to Dr Anil Bikram Karki, president, Nepal Medical Association, the source of disease is the mouth. Smoking causes heart disease as well as health problems such as asthma, bronchitis and pneumonia. Protect the  According to a study conducted by NDRI, 10 to 15 percent of students in Kathmandu Valley consume some form of tobacco. Dr Gurung asks, “Is our attention enough to protect the youth from the evils of smoking?” The new generation has gone from smoking cigarettes to enjoying hookah bars in restaurants. From airports to bus parks and from public vehicles to clubs, public toilets, and workplaces of industries and factories, tobacco products are consumed openly. Smoking goes unchecked in hotels, restaurants, bars, eateries, lodges, canteen, swimming pools, and pool houses. Annapurna Express has been lobbying to raise the tax rate to at least 50 percent in the coming financial year under the No Tobacco Drive campaign. The network has also been conducting various environment-friendly activities with the main slogan of Unity for Sustainability.

The improvement in the country's external sector has continued in the eight months of the current fiscal year. The latest macroeconomic report published by the Nepal Rastra Bank (NRB) on Tuesday shows noticeable improvements in the country's forex reserves, balance of payment (BOP), tourism income, and remittance inflow. According to the report, Nepal's BOP is at a surplus of Rs 148.10 billion in the eight months of FY 2022/23 compared to a deficit of Rs 258.64 billion in the same period of FY 2021/22. The BoP had turned surplus in mid-October 2022 after a gap of 14 months. In US Dollar terms, the BOP is at a surplus of 1.12 billion in this fiscal year compared to a deficit of 2.17 billion in the same period of the last fiscal year. The country's forex reserves increased by 15.2 percent in the first eight months of the current fiscal year. Nepal's forex reserves stood at Rs 1401.21 billion in mid-March 2023 (Falgun) from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves increased by 12.1 percent to Rs 10.69 billion in mid-March 2023 from Rs 9.54 billion in mid-July 2022. The central bank said that the foreign exchange reserves of the banking sector are sufficient to cover merchandise imports for 10.8 months, and merchandise and services imports for 9.4 months. According to the report, remittance inflows have increased by 25.3 percent to Rs 794.32 billion in the review period. The inflow of remittances had decreased by 1.3 percent in the same period of the last fiscal year. In US Dollar terms, remittance inflows increased by 14.8 percent to 6.09 billion in the review period against a decrease of 2.6 percent in the same period of the previous year. Meanwhile. current account deficit (CAD) has also narrowed significantly in the last eight months. As per the report, CAD has now come down to Rs 44.31 billion which was Rs 460.72 billion in the same period of the previous year. NRB Executive Director Prakash Shrestha said that the improvement in the external sector is due to the slowdown of credit disbursement. "The economy has plunged into trouble mainly due to a lack of credit investment in the productive sector," said Shrestha at a press meet organized by the central bank on Tuesday. "If the loans to be invested in the future do not help to increase domestic production, the economy will face problems again." According to him, the country's economy has faced problems when loans were invested in the real estate and stock markets in the past. "If the credit flow to these sectors increases in the future, this cycle will get repeated." Inflation slows down slightly The NRB report shows consumer inflation has declined slightly in Falgun (mid-February to mid-March) compared to Magh (mid-January to mid-February). Consumer inflation stood at 7.44 percent in mid-March compared to 7.88 percent in mid-February. Food and beverage inflation stood at 5.64 percent whereas non-food and service inflation rose to 8.87 percent. Under the food and beverage category, the price of cereal grains and their products sub-category increased by 14.35 percent, the restaurant and hotel sub-category increased by 14.09 percent, spices by 10.88 percent, tobacco products by 10.83 percent, and alcoholic drinks by 8.78 percent. Under the non-food and services category, the price of transportation sub-category increased by 13.23 percent, health by 10.39 percent, housing and utilities by 9.72 percent, recreation and culture by 8.81 percent, and furnishing and household equipment by 8.79 percent. According to NRB, the rate of inflation in the Kathmandu valley, Terai, hills, and mountainous regions surged to 7.95 percent, 7.50 percent, 6.67 percent, and 8.07 percent, respectively.

A fire broke out at the Tigerland Resort in Jagatpur of West Chitwan on Wednesday. DSP Bijay Pandit of the District Police Office, Chitwan said that three fire engines are trying to extinguish the flame. Police suspect that an electric short circuit caused that fire. It has been learnt that the fire broke out at the seminar hall of the hotel.

To calm down the anger of a desperate business community that is bearing the brunt of the economic downturn, the government has said it will take necessary measures to take the derailed economy back on track. On Tuesday, Prime Minister Pushpa Kamal Dahal and Finance Minister Dr. Prakash Saran Mahat have assured the private sector that the government is working on lowering interest rates and reinvigorating the investment climate in the country. Addressing the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industries (FNNCI) on Tuesday, Prime Minister Dahal said the government is committed to resolving the problems of the economy and intensive discussions have started between the government and Nepal Rastra Bank. "All the government agencies are working together and are on the same page for reducing the borrowing rates, making the market vibrant by increasing the capital expenditure, and other policy interventions," said Dahal. With businesspersons across the country gathering in Kathmandu for FNCCI AGM and to elect a new leadership, Prime Minister Dahal said the government is well aware of the private sector's expectations. Stating that the economy is moving towards recovery but not completely out of the crisis, Dahal said collaboration and cooperation between the government and the private sector are indispensable for economic recovery. Addressing the program, Finance Minister Mahat said that time has come for the review of the measures in the monetary policy. According to Mahat, the policy to restrict imports created pressure on revenue and the surge in the interest rates worsened the investment environment. "As sectors are in recession, the central bank should now take a policy shift. "We are in internal discussions to reduce the interest rate of deposits and loans, and the spread rate," said Mahat. Amid increasing discontent in the private sector, the government, of late, is trying to take them into confidence. On Monday, Prime Minister Dahal along with senior government officials sat down with representatives of banks and financial institutions. The government has hinted that it would lift restrictions on land plotting again to reenergize the real estate sector. The real estate business has come to a standstill across the country with the government's decision to classify land for different purposes. The government implemented land use regulations in June 2022. In the regulation, the local bodies have to classify the land into 10 types. While most of the local bodies are yet to classify the land, both Prime Minister and Finance Minister have said that they would facilitate the realty business. FNCCI President Shekhar Golchha said that the country's development is not possible without the private sector. Stating that the federation is on a mission to save the economy, Golchha said, "The economy is in trouble due to the mistakes made by all parties in the past. Now, everyone has to work together for a solution." Chandra Prasad Dhakal, Senior Vice President of FNCCI said normalcy would return to the economy within three months if the government and the central bank facilitate the private sector. Dhakal called for broader consultations amongst the stakeholders to resolve the current crisis.

The price of gold has increased by Rs 1, 000 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 110, 800 per tola today. The gold was traded at Rs 109, 800 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 110, 250 per tola. Similarly, the silver is being traded at Rs 1,450 per tola today.

Amid increasing criticism over the policy measures of the central bank, Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari on Tuesday said that the central bank has no role in determining the interest rates. Adhikari's comments have come on the same day when Prime Minister Pushpa Kamal Dahal and Finance Minister Prakash Saran Mahat assured the private sector of lowering the interest rates. Stating that the central bank has left determining interest to the market since 1989, Adhikari said banks will determine the interest rates based on the availability of liquidity in the financial system. Addressing a press meet organized by the NRB on Tuesday, Adhikari said that it is up to the market to determine the interest rates. "If the liquidity flow in the market eases, the interest rate will automatically decrease. If the liquidity is in short supply, the interest rate will automatically increase," said Adhikari. According to Adhikari, it is wrong to say that economic activities declined due to the increase in interest rates. "This is not the first time that the interest rates have reached this level," he said, "In the past, the deposit interest rate was up to 13 percent, but people did not demand to low the interest rate. Why is there such a demand now?" Adhikari assured that the banking system in the country is safe and will not be shaken by smaller shocks. The capital adequacy ratio of banks and financial institutions is above 13 percent. "This is the strong side of Nepali banks," he said. However, the governor cautioned that the non-performing loans will increase slightly in the coming days. "The 'evergreening' of loans has been stopped and bad loans may increase due to problems in the real sector, Adhikari said, "But it will not affect the stability of our financial system." The central bank has said that the external sector of the economy has improved a lot compared to last year. Major indicators such as the current account balance, foreign exchange reserves, and remittances have shown promising signs over the last couple of months. According to Adhikari, a high-level study committee has been formed to resolve the problems of the microfinance sector. "Further decisions will be taken on the basis of the report submitted by the committee," he said.

Four Indian nationals died in a car accident at Gadhigate in Kamalamai Municipality-3 of Sindhuli along the BP Highway on Wednesday. The identities of the deceased are yet to be established. According to SP Raj Kumar Silwal of the District Police Office, Sindhuli, the car with Indian number plate (BR 06 DD -687) met with an accident at around 12.30 this morning. He said that a person, who was seriously injured in the incident, has been taken to Kathmandu for further treatment. SP Silwal said that the tragedy occurred after the four-wheeler fell some 500 meters down the road. He said that they are facing difficulties to retrieve the bodies from the incident site due to geographical complexities. A team of Nepal Army is heading towards the incident site to help Nepal Police personnel to retrieve the bodies.  

At least six persons died on the spot when a jeep they were traveling in met with an accident at Jholekmod in Patan Municipality-8 of Baitadi section along the Jayaprithvi Highway on Tuesday. The deceased have been identified as Mane Bohora (60), Nare Bohora (42), Gorakh Bohora (35), Man Bahadur Dhami (45), Birkha Dhami (45) and Bire Dhami, 40, of Kedarsyun Rural Municipality-5. The jeep (Se 1 Ja 764) was heading towards Bagthala of Bajhang from Jhulaghat when the tragedy occurred at around 11.00 pm yesterday, Inspector Yogesh Khatry, spokesperson at the District Police Office, Baitadi said. Five other passengers of the jeep narrowly escaped the fatality as they managed to jump before the accident. The jeep carrying 12 passengers had fallen 500 meters down the road. The jeep driver fled the scene after the incident. Reason behind the accident is yet to be established. Police said that they are looking into the case.