Thursday, June 6, 2019

Exporters demand 15 per cent cash incentives


Kathmandu, June 5
 Commodity exporters have demanded 10-15 per cent cash incentives on exports at par the neighbouring countries.

Saying that the exportable goods of Nepal are about 18 per cent expensive compared to its South Asian peers due to its landlocked status which increased transportation costs, they demanded additional cash incentives to promote export of Nepali goods.

"The government had announced to provide 3-5 per cent cash incentives on export, but it has not paid it to the exporters till now," 11 commodity associations said in a statement on Wednesday.

Commodity associations of handicraft, pashmina, handmade paper, tea, woollen, silk, carpet, garment, herbs and herbals and felt and Nepal Export Council jointly organised a programme to say that the budget of the next Fiscal Year 2019/20 failed to address their various demands.

They demanded concessional loan, refinancing with 4.5 per cent interest rate and one-year renewal period and 3 per cent interest on the loans on fixed capital.

Provisions of project financing, 10 per cent bank loan mobilisation in export-related industries, and five-year income tax waiver for the newly set up export-oriented enterprises and three-year for the companies that are already in operation are other demands.  

"Internationally accredited lab should be established at the earliest. Likewise, the government should facilitate in the import of camouflage cloth, value chain development, collective brand creation and promoting Nepali goods in the international markets," they said.

Similarly, the exporters demanded increase in the participation of Nepali producers in the international trade exhibition and fairs and mobilise the Nepali missions abroad for trade promotion.

They also suggested implementing special labour act for the industries that run on seasonal basis.

Published in The Rising Nepal daily on 6 June 2019. 



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