Exporters To Get Cash Incentive .

The decision came at a time when the fiscal year is nearing to its end, though the provision was spelled out in the budget for the current fiscal year. The earstwhile government had brought the policy of cash incentives in the current budget to promote exports.

However, the last cabinet meeting has approved cash incentives policy for the exports after November 21, 2010.

According to the current fiscal year’s budget, cash incentive of up to four per cent will be provided to exporters on the backdrops of trade deficit following increase in import and decrease export in recent years.

“Now exporters will get cash incentive of the total exports made after November 21, 2010 in the current fiscal year,” said acting secretary at Ministry of Commerce and Supplies Chandra Ghimire. The budget for the current fiscal year had been delayed four months due to political tug of war between the parties.

According to Ghimire, the country’s total export in last ten months is around Rs 52 billion but the government is offiering cash incentive for the exports to third countries that wroth only Rs 17.5 billion. “Only the exports to third countries get cash incentive this time,” he said, adding that cash incentives is not included in export to India due to technical difficulties.

Under the programme, exports that have added value between 30 per cent and 50 per cent will get cash incentive of two per cent, whereas products thathave added value of 50 per cent to 80 per cent will get three per cent and over 80 per cent value added products’ exports will get four per cent cash incentives.

According to the ministry, exporters will get the cash incentive from the bank they are doing the transaction and Nepal Rastra Bank is instructed to deposit cash incentive to the respective banks of the exporters. “A division within the ministry will certify each value addition claims,” Ghimire added.

The ministry is hoping that the new policy will encourage exporters to expand their business creating new opportunities in the sector. “We hope the incentive will create opportunities and encourage export-oriented industries,” he said.

Source : thehimalayantimes.com