Identifier
Created
Classification
Origin
06KATHMANDU1012
2006-04-19 13:08:00
CONFIDENTIAL
Embassy Kathmandu
how-toVZCZCXYZ0039 OO RUEHWEB DE RUEHKT #1012 1091308 ZNY CCCCC ZZH O 191308Z APR 06 FM AMEMBASSY KATHMANDU TO RUEHC/SECSTATE WASHDC IMMEDIATE 1174 INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 4239 RUEHLM/AMEMBASSY COLOMBO PRIORITY 4501 RUEHKA/AMEMBASSY DHAKA PRIORITY 9597 RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 2493 RUEHLO/AMEMBASSY LONDON PRIORITY 3890 RUEHNE/AMEMBASSY NEW DELHI PRIORITY 9605 RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
C O N F I D E N T I A L KATHMANDU 001012
SIPDIS
SIPDIS
DEPT FOR SCA/INS
E.O. 12958: DECL: 04/19/2016
TAGS: ECON EFIN PGOV NP
SUBJECT: NO SUPPORT FOR TAX BOYCOTT
REF: KATHMANDU 993
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
BUSINESS LEADERS NOT SUPPORTIVE OF PARTIES' TAX BOYCOTT
--------------------------------------------- ----------
C O N F I D E N T I A L KATHMANDU 001012
SIPDIS
SIPDIS
DEPT FOR SCA/INS
E.O. 12958: DECL: 04/19/2016
TAGS: ECON EFIN PGOV NP
SUBJECT: NO SUPPORT FOR TAX BOYCOTT
REF: KATHMANDU 993
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
BUSINESS LEADERS NOT SUPPORTIVE OF PARTIES' TAX BOYCOTT
-------------- --------------
1. (C) Business leaders told Emboff they do not support the
seven-party alliance's recent call to boycott the paying of
taxes and customs duties (ref A). Prakash Shrestha,
President of the Hotel Association of Nepal (HAN),said that
because democracy should bring peace and stability, both good
for business, HAN had voiced support for the pro-democracy
movement. However, he said the Parties' call to boycott the
paying of taxes was a "suicidal demand" that would set a
dangerous precedent. Shrestha explained that obeying the
Parties' call to boycott taxes would set a new standard for
future civil protests and only result in hurting the Nepali
people. He said the fight for democracy was the political
parties', not HAN's. President of the Nepal Trekking Agents
Association (NTAA) Narendra B.C. commented that the NTAA did
not support the tax boycott. He pointed out that it was his
duty as a citizen of Nepal to pay taxes in order for the
government system to function.
CUSTOMS OFFICIALS NOT CONCERNED ABOUT LACK OF REVENUE
COLLECTION DURING STRIKE
-------------- --------------
2. (C) Sudeep Chandra Shah, Chief Customs Officer at the
Internal Cargo Depot (ICD) in the Nepali bordertown of
Birjunj, told Emboff that seven trainloads of goods have
arrived since the beginning of the Parties' general-strike.
He explained that, due to the general strike, importers had
yet to request their goods to be cleared through Nepali
customs and thus no tariff revenue had been collected. Ravi
Raj Pant, Director of the Tariff Division of the Department
of Customs, told Emboff he was "not worried" about the
momentary lack of revenue collection caused by the general
strike. He stated that cargo was piling up in the warehouses
in Birgunj and that customs tariffs would eventually be
collected.
COMMENT
--------------
3. (C) The business community's attitude supporting the
pro-democracy movement while continuing to pay taxes
indicates that businessmen are not yet willing to seriously
confront the government in order to promote democracy.
MORIARTY
SIPDIS
SIPDIS
DEPT FOR SCA/INS
E.O. 12958: DECL: 04/19/2016
TAGS: ECON EFIN PGOV NP
SUBJECT: NO SUPPORT FOR TAX BOYCOTT
REF: KATHMANDU 993
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
BUSINESS LEADERS NOT SUPPORTIVE OF PARTIES' TAX BOYCOTT
-------------- --------------
1. (C) Business leaders told Emboff they do not support the
seven-party alliance's recent call to boycott the paying of
taxes and customs duties (ref A). Prakash Shrestha,
President of the Hotel Association of Nepal (HAN),said that
because democracy should bring peace and stability, both good
for business, HAN had voiced support for the pro-democracy
movement. However, he said the Parties' call to boycott the
paying of taxes was a "suicidal demand" that would set a
dangerous precedent. Shrestha explained that obeying the
Parties' call to boycott taxes would set a new standard for
future civil protests and only result in hurting the Nepali
people. He said the fight for democracy was the political
parties', not HAN's. President of the Nepal Trekking Agents
Association (NTAA) Narendra B.C. commented that the NTAA did
not support the tax boycott. He pointed out that it was his
duty as a citizen of Nepal to pay taxes in order for the
government system to function.
CUSTOMS OFFICIALS NOT CONCERNED ABOUT LACK OF REVENUE
COLLECTION DURING STRIKE
-------------- --------------
2. (C) Sudeep Chandra Shah, Chief Customs Officer at the
Internal Cargo Depot (ICD) in the Nepali bordertown of
Birjunj, told Emboff that seven trainloads of goods have
arrived since the beginning of the Parties' general-strike.
He explained that, due to the general strike, importers had
yet to request their goods to be cleared through Nepali
customs and thus no tariff revenue had been collected. Ravi
Raj Pant, Director of the Tariff Division of the Department
of Customs, told Emboff he was "not worried" about the
momentary lack of revenue collection caused by the general
strike. He stated that cargo was piling up in the warehouses
in Birgunj and that customs tariffs would eventually be
collected.
COMMENT
--------------
3. (C) The business community's attitude supporting the
pro-democracy movement while continuing to pay taxes
indicates that businessmen are not yet willing to seriously
confront the government in order to promote democracy.
MORIARTY