MoI forwards Industrial Enterprise Act
KATHMANDU:
The Ministry of Industry (MoI) has finally forwarded the proposed ‘Industrial Enterprise Act 2070’ to the Cabinet to proceed with the implementation of its long awaited plans and programmes mentioned in the Industrial Policy 2067.
“The major highlight of the Industrial Act is micro, small and cottage industry,” said under secretary at MoI Bishnu Prasad Dhakal. “It focuses majorly on industrial promotion and rights of industrialists,” he added.
The ministry forwarded the Act to Cabinet on October 8, for its final approval. According to Dhakal, Act also includes suggestions from the private sector.
The Industrial Policy 2067 is more focused on development of micro, small and cottage industry. It has also guaranteed exemption of VAT and other taxes. Similarly, VAT and other taxes will be exempted for cottage industries established in least developed, developing and underdeveloped regions for 12 years, seven years and five years, respectively. Later, they will be charged only 75 per cent, 60 per cent and 50 per cent taxes, respectively.
In the Industrial Enterprise Act 2070, the ministry has defined micro enterprises as those industries that have a total capital of Rs two lakh, while it has also revised total capital of cottage industry from Rs 30 million to Rs 50 million. Total capital of large-scale industry has been raised from Rs 100 million to Rs 250 million.
The Act states that the formation of a Special Economic Zone will increase investment and production, help promote exports, and generate employment.
It also mentions of a special facility for women entrepreneurs, under which industries registered under women entrepreneurs will be given 35 per cent discount on registration charge. They will also be granted 20 per cent discount on trademark registration, patent, and design registration charges. A separate development fund and unit for women entrepreneurs has already been established through an ordinance. According to Dhakal, till date, Women Entrepreneurs Development Fund has Rs four lakh since last fiscal year.
The policy includes both fiscal and non-fiscal facilities for industries. Gender analysis and assessment, gender audit, and gender budget system will be brought into implementation.
The much-awaited Industrial Policy 2067 was unveiled in May 2010, replacing the 18-year old outdated Industrial Policy 2049. The Industrial Policy 2067 has also introduced the international rule of ‘No Work No Pay’.
Source: THT
