Kathmandu, October 14, 2012
Exporters will soon be able to get a flat two to four per cent cash incentive on product basis. The much-sought demand of exporters to get a flat percentage in exportable products has been approved by the Finance Ministry.
“The Finance Ministry has already forwarded its decision to the high-level committee to allow a flat two, three and four per cent cash incentive for exportable products,” said secretary at the ministry of commerce and supplies Lal Mani Joshi.
“There will be cash incentive based on product, and it will now be much simpler to avail the facility,” said Joshi. However, he added that though the Finance Ministry has already forwarded its decision, the high-level committee, till date, has not organised any meeting to discuss on the proposal.
A committee was formed under the coordination of vice chairman of the National Planning Commission to form a simplified working procedure of the cash incentive process. The committee also consists of secretaries from the Ministry of Industry, Ministry of Commerce and Supplies, Ministry of Finance, and governor.
Due to procedural complications in availing cash incentives, exporters had repeatedly urged the government to simplify the process. They had urged the government to introduce a system of flat cash incentive. According to them, the government should fix a flat percentage based on product or should allow two per cent cash incentive for non-value added products and four per cent cash incentive for value added products.
Currently, the Department of Industry (DoI) recommends cash incentive of two, three and four per cent based on the value addition of the products. “The procedure to receive cash incentive is quite complicated as it is difficult to show value addition in some products though they are manufactured using domestic raw materials,” said president of Garment Association – Nepal Uday Raj Pandey.
Pandey said that handmade paper and agricultural products are some of the products that are facing difficulties in showing product value addition. “Besides exporters, the government should also allow cash incentive to trading firms and to those who export to India through banking channels,” he said. At present, cash incentive facility is allowed for third country exporters only.
Meanwhile, DoI has currently stopped recommendation process. “We have been receiving applications and verification is taking place, but we are not providing any recommendations at the moment,” said spokesperson at DoI Ram Sharan Chimariya.
The government had allocated Rs 300 million for the programme and as there is no additional budget for further recommendation, DoI has stopped the recommendation process. It has asked for a budget of Rs 400 million for the current fiscal year.
Source: THT
Exporters will soon be able to get a flat two to four per cent cash incentive on product basis. The much-sought demand of exporters to get a flat percentage in exportable products has been approved by the Finance Ministry.
“The Finance Ministry has already forwarded its decision to the high-level committee to allow a flat two, three and four per cent cash incentive for exportable products,” said secretary at the ministry of commerce and supplies Lal Mani Joshi.
“There will be cash incentive based on product, and it will now be much simpler to avail the facility,” said Joshi. However, he added that though the Finance Ministry has already forwarded its decision, the high-level committee, till date, has not organised any meeting to discuss on the proposal.
A committee was formed under the coordination of vice chairman of the National Planning Commission to form a simplified working procedure of the cash incentive process. The committee also consists of secretaries from the Ministry of Industry, Ministry of Commerce and Supplies, Ministry of Finance, and governor.
Due to procedural complications in availing cash incentives, exporters had repeatedly urged the government to simplify the process. They had urged the government to introduce a system of flat cash incentive. According to them, the government should fix a flat percentage based on product or should allow two per cent cash incentive for non-value added products and four per cent cash incentive for value added products.
Currently, the Department of Industry (DoI) recommends cash incentive of two, three and four per cent based on the value addition of the products. “The procedure to receive cash incentive is quite complicated as it is difficult to show value addition in some products though they are manufactured using domestic raw materials,” said president of Garment Association – Nepal Uday Raj Pandey.
Pandey said that handmade paper and agricultural products are some of the products that are facing difficulties in showing product value addition. “Besides exporters, the government should also allow cash incentive to trading firms and to those who export to India through banking channels,” he said. At present, cash incentive facility is allowed for third country exporters only.
Meanwhile, DoI has currently stopped recommendation process. “We have been receiving applications and verification is taking place, but we are not providing any recommendations at the moment,” said spokesperson at DoI Ram Sharan Chimariya.
The government had allocated Rs 300 million for the programme and as there is no additional budget for further recommendation, DoI has stopped the recommendation process. It has asked for a budget of Rs 400 million for the current fiscal year.
Source: THT
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