Exporters flay newly amended incentive rate

KATHMANDU, MAY 25:

Even though the amended Cash Incentives Regulation 2070 is simpler than the previous one, exporters have expressed that the percentage allocated to exportable products are too low to make them competitive in the international market. The amended regulation has set a maximum of two per cent and minimum of one per cent cash incentive.

Exporters here said that the percentage allocation is quite low and it is still very tough to survive and compete in the international market. “Our products share the same market with products from other countries and they are enjoying better export facility than our products,” said general secretary at Nepal Pashmina Industries Association Vijay Dugar.

The government has allocated cash incentive of two per cent for pashmina products. According to Dugar, exportable products from China, India and Bangladesh are granted five times the cash incentive that exporters receive in Nepal, and that is why our products are more expensive than those from other countries.

“Indian exporters receive 14

per cent cash incentive while the Chinese get 11 per cent,” said Dugar, adding the current cash incentive might be experimental and needs a revision.

Source: THT