Monday, November 19, 2018

NTA to open padlocked industries from Monday


Kathmandu, Nov. 18: Nepal Textile Association (NTA) has withdrawn its decision to shut down all industries across the country for a week.

Following an assurance from the Finance Minister Dr. Yuba Raj Khatiwada on Sunday evening about finding an amicable solution to the entrepreneurs problem, the latters have agreed to open the industries that were padlocked from Saturday.

FM Dr. Khatiwada has urged the industries to hold their protest at least for 10 days, said Jitendra Lohia, Vice-President of NTA.

“Finance Minister listened to our grievances and assured to find solution. Since the minister has assured us for the first time in serious note, we have agreed to listen to him. He seemed very positive to our demands,” he said.

The textile entrepreneurs hold their meeting in the Capital immediately after the discussion with the Minister and asked all industries to open the mills.

Blaming for the government’s indifference to their demand to review its decision to annul the Value Added Tax (VAT) refund system through the budget of the current fiscal year 2018/19, the textile industrialists had decided to shut the industries for a week bringing about 250 textile mills across the nation to a complete halt and affecting employment of about 50,000 workers.

According to the entrepreneurs, the removal of VAT refund facility has increased the textile production cost by almost 9 per cent and made the domestic cloth even dearer.

They said that they would be satisfied with alternatives like border regulation, control of under-invoicing, formulation of anti-dumping law, and subsidies on electricity and import of chemical and machines.

A government formed committee that included private sector representative as well has suggested subsidy on electricity, include textile in priority sector lending, tax discount on machine, parts and chemical import.
Published in The Rising Nepal daily on 19 November 2018. 

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