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Nov. 18: Nepal Textile Association (NTA) has withdrawn its decision to shut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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