Industries set to get more incentives
KATHMANDU:
After the Industrial Enterprise Bill got the Cabinet’s nod, Ministry of Industry (MoI) is set to table the Bill that envisages more facilities for industries to boost the manufacturing sector in the country in the upcoming session.
The Bill that was approved by the Cabinet has a raft of incentives for industries ranging from registration to operation.None of the local taxes would be levied on industries established in the industrial estates and the industries can claim value added tax (VAT) refund from the government after exporting goods manufactured in the country, as per the Bill.
Furthermore, the government will provide security to industries after the Bill gets endorsed by the Parliament, which might help attract more foreign direct investment (FDI) in the manufacturing sector. To gain the trust of investors, the proposed Bill has also assured that the government would not nationalise the industries established under the proposed law.
At a time when most manufacturing industries are not being able to utilise full capacity due to power shortage, the proposed law has prioritised energy-related industries. Similarly, the Bill prioritises agriculture, forest resources-based industries, construction, and export-oriented industries.
Some other industries, like, clinker and cement factories, organic and chemical fertiliser plants, pharmaceuticals, dairy plants, mineral-based industries, agricultural machineries production are also listed in the priority list. Subsequently, service industries like tourism and hospitality, health and education are also included.
The proposed law also aims to increase entrepreneurship in the country by providing incentive to cottage industries and for industries set up by women. Regarding cottage industries, free registration, as well as income tax exemption for first five years have been proposed.
Likewise, the Bill proposes 35 per cent discount on registration fees for industries promoted
by women. Such industries will also get 20 per cent discount while registering industrial property. In addition, the government will make arrangement of loans for women entrepreneurs if they want to export the products manufactured in their industries.
The government can declare the areas as a special economic zone, special trading zone, tourism hub, among others in a bid to run industrial activities intensively, as per the Bill.
“The government will provide facilities for the declared industrial corridors, industrial villages or industrial clusters.”New classification of industries will come into effect once the Bill gets endorsed by the parliament. The Bill proposes Rs 200,000 as fixed capital for cottage industries, and Rs 100 million fixed capital for small industries. Industries that have fixed capital of Rs 100 million to Rs 250 million would be categorised as medium scale industries, while those with capital above Rs 250 million would be categorised under large scale industries.
Source: THT
