Govt to simplify cash incentive facility

KATHMANDU, JAN 18: 

The high-level committee formed to simplify the cash incentive procedure is all set to introduce a much simpler cash incentive facility through banks for exporters. 

“We will shortly introduce a system in which an exporter can claim the cash incentive simply by providing export documents to the bank,” said vice chairman of National Planning Commission Deependra Bahadur Kshetri, who is also the coordinator of high-level committee. 

According to him, the revised cash incentive procedure will help all export items be eligible for the government announced export incentive. Earlier, it was mostly lentils that had received maximum recommendation for cash incentive. “The revised cash incentive will be a completely hassle free process and exporters can easily get their incentive based on the documents given to banks,” he said. 

However, Kshetri also added that the revised cash incentive procedure might also include some random investigation of exportable items to ensure the value addition of products. “We will also mention some criteria for products to fix individual percentage for the export items,” he said. 

The Department of Industry, till date, has recommended around 15 different products for cash incentive. However, due to lack of sufficient budget, the process was withheld. 

Exporters had also recommended the high-level committee to allow cash incentive facility for trading firms as it also has equal contribution in the country’s exports. 

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

“We are preparing to restart the cash incentive process from the applicants who have already applied for the cash incentive through the Department of Industry,” said Kshetri.

Source: THT