Exporters ask govt for 10pc cash incentive

KATHMANDU, MAY 28:

Nepal Pashmina Industries Association (NPIA) has asked the government to fix a minimum 10 per cent cash incentive on exportable products having collective trademark.

With an urge to revise the current cash incentive facility pashmina products are entitled with, it has asked the government to introduce a new system that will allow 10 per cent cash incentive on exportable products that has its collective trademark registered in the international market.

“A trademark ensures quality of products which make them more competitive in international market,” said general secretary of the association, Vijay Dugar. “And if the products with collective trademark is allowed a minimum 10 per cent of cash incentive, it will definitely help to boost our exports,” he said.

Nepali pashmina is registered as ‘Chyangra Pashmina’ in more than 40 nations and Handmade Paper is registered as ‘Lokta Paper’ in Germany.

Nepali carpet being a major exportable product has lost quality markets due to lack of proper cash incentive and absence of trademark. Government has fixed a cash incentive of two per cent to the Nepali hand knitted carpet. Carpet exporters have urged the government to support products’ collective trademark registration process and promote it in international market.

Meanwhile, president of the Garment Association – Nepal (GAN) Uday Raj Pandey said that the government is planning to revise the cash incentive by the end of August this year. The government has only fixed one per cent cash incentive for Nepali Readymade garment while two per cent cash incentive has been fixed for the Chyangra Pashmina.

Earlier Nepali Readymade Garment was receiving a cash incentive of two to three per cent. “The cash incentive facility given to garment is unjustified and needs a revision,” Pandey said. “The amendment made in the cash incentive process has failed to encourage the overall export sector,” said director general of the Federation of Nepalese Handicraft Association of Nepal (FHAN) Dilip Khanal.

“Unless the government facilitates small exporters, the cash incentive facility will not be welcomed by the exporters and it will not work at all,” Khanal added. “The main objective of the facility is to increase competitiveness of domestic products in the international market, he said, adding that the available cash incentive has discouraged exporters.

Government has allocated a cash incentive of two per cent to handicrafts and wooden crafts. Cash Incentive Regulation 2070 has set two per cent cash incentive for processed coffee, semi-processed leather, handicrafts and wooden crafts, crust, handmade paper and its products, refined honey, tea, carpet and woollen products, pashmina and fibre products, and refined herbs.

Likewise, instant noodles, polyester fibre viscous yarn, polyester textile yarn, readymade garment, vegetable ghee, transformers, semi precious stone, gold jewelleries, turmeric and dry ginger have been receiving one per cent cash incentive.

Source: THT