Cash incentive process awaits Cabinet nod

KATHMANDU, MAR 13:

The high level committee formed to simplify the cash incentive process has finally approved a new cash incentive procedure.

“The new cash incentive procedure has been approved by the high level committee and has forwarded it to the cabinet,” said secretary at the ministry of commerce and supplies Lal Mani Joshi. According to Joshi, the new procedure is very simple as compared to the previous one and has a regulation that facilitates both exporters and manufacturers.

Ministry of Commerce and Supplies (MoCS), in its cash incentive regulation draft, had suggested the committee to allow the facility for both exporters and manufacturers based on minimum value addition to products. “We are waiting for the cabinet’s direction to implement the process,” said Joshi.

The ministry has said that now the cash incentive percentage will have a fixed interest rate and will be based on the nature of the product. However, there will be no cash incentive facility available for those who export to India as there are a number of fraud documents involved which need to be managed by the government before allowing the facility.

“We need a reliable documentation channel for Indian exporters. Till then there won’t be any cash incentive facility for them,” he said.

There are some exporters who do not use the banking channel while exporting goods to India, which could give rise to fraudulent activities.

Source: THT