Wednesday, February 15, 2023

Cottage, small industries to be exempted of taxes

Kathmandu, Feb. 14

Prime Minister Puspa Kamal Dahal Prachanda said on Tuesday that cottage and small industries that have potential for growth would be freed from all taxes for a certain period, and special programme would be launched to enhance their capital, technology and access to finance and market.

Addressing the inaugural programme of the 16th International Industry Trade Fair and Cottage Industry Festival and 6th Organic Agriculture Exhibition 2023 that kicked off at the Bhrikutimandap Exhibition Centre in the Capital, he pledged to introduce special programmes with redefining the subsidised loans provided to the cottage and small industries in the manufacturing sector to encourage them.

The Prime Minister also said that the attention of the government had been drawn to the complicated system of submitting documents and revenue from ward of the local body to the federal government as well as to the Company Registrar's Office for the registration and renewal of the cottage and small industries. "It has a negative impact on the creation of the business-friendly environment. The government will soon find a solution to it," he informed.

In the past several years, the government has announced to establish micro-enterprise village, cottage and small industry village at the local level but there has been no progress. According to PM Prachanda, arrangements will be made for the establishment and operation of such industrial village by the federal government. Grant would be provided to the local governments for the operation of such facilities.

Acknowledging that the policies and programmes of the three levels of the government failed to compliment each other in terms of building a positive industrial environment in the country, the Prime Minister pledged to formulate progressive industrial policy in coordination with all of them.

Meanwhile, he also said that the concessional loans for women, youth and agricultural entrepreneurs will be made more effective. Likewise, for the promotion of production and consumption of indigenous goods, the Prime Minister's Office will form a task force with the participation of the private sector for the immediate implementation of Prime Minister Domestic Product Production and Consumption Promotion Programme.

PM Prachanda further said that agricultural-based industries could be the most viable business for Nepal however, there is a need to produce agricultural products that are original and linked to our culture and tradition.

President of Federation of Nepalese Cottage and Small Industries (FNCSI), Umesh Prasad Singh, said that the entrepreneurs are on the verge of bankruptcy due to the acute shortage of liquidity in the recent past and exorbitant bank interest rates.

"The cottage and small entrepreneurs neither have the facility to get refinancing nor ability to pay the interest in the pretext of decreasing production and business and increasing cost and interest rates," he said.

Singh demanded to continue with the concessional loans for women, youth and agriculture entrepreneurs and make it more effective.

Likewise, Minister for Tourism, Industry and Cooperatives of Bagmati Province, Dambar Tamang, stressed on harnessing technology to expand market, and promote Nepali products in the international markets.

According to him, cottage industries also help to empower women with skill development, application and promotion.

"We need to promote our original products, that carry our culture, tradition and use local resources globally. Entrepreneurs should pay attention to the branding of their products," said Minister Tamang.

According to the FNCSI, there about 246,000 cottage and small industries in operation across the country. This sector has total investment of Rs. 353 billion and provided employment to 2.46 million people.

The expo features various products ranging from agriculture, garment, food, natural fibre, technology, spices and pickles to leather goods.

The fair has come back after a pause for three years in the past due to the COVID-19 pandemic. It will run for five days till 18 February. 

Published in The Rising Nepal daily on 15 February 2023.

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