Govt plans incentives for major export items

KATHMANDU, FEB 12:

The government, in its ‘Immediate Action Plan for Economic Development and Prosperity’, has proposed export incentives for major commodities exported to a third country.

It has chosen carpet, garment, handicrafts, agricultural products and herbs to avail the facility. “It will provide export incentives to those products that are majorly exported to third countries,” said director general of the Department of Industry Dhurba Lal Rajbamshi.

“Exporters under the facility will receive special discounts in customs duty,” he said, adding that it is part of the government’s initiative to promote the export sector and to also encourage local enterprises. 

“The department is still waiting for a more detailed information about the export incentive from its line ministry,” said Rajbamshi.

Earlier, the Ministry of Commerce and Supplies had proposed to the government of an export incentive facility. However, the government only announced a cash incentive facility for exporters earning from convertible currencies. 

The cabinet had, on June 9, 2011, approved the decision to implement the cash incentive programme. The government introduced the policy to encourage the export sector that has witnessed a decline in recent times. 

According to the government criterion, if a product has a value addition of 30 per cent to 50 per cent, the exporter will receive a cash incentive of two per cent. If value addition is 50 per cent to 80 per cent, the exporter will get three per cent cash incentive and for a value addition of more than 80 per cent, the exporter will be entitled to a cash incentive of four per cent.

At present, the department has provided recommendations for six different products and has started a survey of the wheat industry in Nepalgunj to prepare its norms.

“A team of technical representatives has left for Nepalgunj to survey the wheat industry. Another technical committee is also going through information provided by carpet entrepreneurs to prepare its norms,” said spokesperson at the department Dhurba Raj Joshi.

Tourism gets priority

The‘Immediate Action Plan’ has also directed the Ministry of Tourism and Civil Aviation to form a master plan for the overall development of the tourism industry. It has also included a plan to develop a Joint Tourism Service Center at six different places in 17 tourism zones. Twenty-five per cent income generated from tourism at the six places will be used for infrastructure development of the respective places, mentions the action plan.

Source: THT