Exporters to get cash incentive from banks

KATHMANDU, DEC 23: 

Exporters are now hopeful about receiving cash incentives from their respective banks on the basis of export documents. 

“We are pleased to know that the working committee formed under Nepal Business Forum is preparing to allow cash incentives directly from banks on the basis of export documents,” said president of Nepal Pashmina Industries Association Pushpa Man Shrestha. 

Nepal Business Forum (NBF) had formed a working committee under coordination of National Planning Commission to prepare a working procedure to simplify cash incentive process. The working committee consists of governor and secretaries from Ministry of Industry, Ministry of Commerce and Supplies (MoCS), and Finance Ministry.

According to Shrestha, the committee is preparing to allow cash incentives on the basis of the yellow paper and bank certificate. “MoCS has also assured us that the ministry’s recommendation will further be forwarded to NBF which will give the final decision,” he said, adding that pashmina products are eligible for three per cent cash incentive. 

“The government can also provide the cash incentive based on the earlier recommendation made by the Department of Industry,” said Shrestha. The Department of Industry, till date, has recommended around 15 different products for cash incentive. However, due to the lack of sufficient budget, the process was later withheld. 

According to president of Garment Association–Nepal Uday Raj Pandey, the cash incentive facility is yet to be cleared. “We hope that the ministry’s recommendation will be mentioned in the budget,” he said. 

Exporters had also recommended the high-level committee formed under the coordination of vice chairman of National Planning Commission Deependra Bahadur Kshetry to allow cash incentive facility for trading firms as it also has equal contribution in the country’s exports. 

They also said the cash incentive process should be amended in such a way that trading firm that receives it must give 50 per cent of incentive to its respective manufacturing industry.

Source: THT