Govt begins distributing export cash incentives

Amid complaints about the delay, the government has started providing export cash incentives to exporters it had announced one-and-a-half years ago. Two exporters have already received such incentives.

The Department of Industry (DoI) is now preparing to provide incentives to an additional 11 exporters within a week. Among the exporters in the incentives list are Triveni Spinning Mill based in Chhatapipara, Bara, Triveni Synthetic Yarn based in Lipnimal, Bara, Continental Tea and Export, Kathmandu and Narayani Modern Pulse Industry of Lipnimal, Bara.

The other exporters include Narayani Modern Manufacturing based in Chainpur, Bara, Everest Art Paper based in Kathmandu, Popular Pashmina Fashion, Kathmandu, Bikash Flour Mills in Shumshergunj, Banke, Adhunik Dal Udhyog, Bara, Dhana Laxmi Synthetic based in Duhabi, Sunsari and Fishtail Rogs in Kathmandu. This is the first time that a large number of exporters are getting cash incentives at a same time.

Earlier, two exporters, including Annapurna Organic Krishi Udhyog, Arghakhachi and District Cooperatives Association, Gulmi, had received the incentives.

According to the DoI, Annapurna received Rs 246,928 and the District Cooperatives Association received Rs 301,694 each. Both of them had received a refund of 4 percent of the export value to maintain value addition above 80 percent.

The working procedure has taken value addition in the country as the main base for providing the cash incentives. Under the scheme, exporters will get a refund of 2 percent on exports of goods having 30-50 percent value addition, 3 percent on goods generating 50-80 percent value addition and 4 percent on goods having more than 80 percent value addition.

“We have begun preparations on a war-footing to provide the incentives,” said Dhruba Lal Joshi, the officiating director general of the DoI.

According to the DoI, only 32 firms have approached it so far, including those that have already received cash. “This is not encouraging at all,” said another DoI official.

Joshi, however, said 19 other firms have not submitted all the required documents for the incentives. “They will also be given the incentives as soon as they submit the required documents,” he said.

Panel to help exporters

The Department of Industry has formed an internal committee to make exporters aware of the procedures of receiving the cash incentives. The six-member committee was formed under the coordination of Gopal Amatya, the director of the Planning Section at the DoI, two days ago. The panel has been asked to check the documents submitted by exporters and facilitate the process. However, some officials expressed fears that it could make the process more bureaucratic.

Source: Kantipur


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