Govt tightens tax waiver facility on relief goods

KATHMANDU, June 8: The government has tightened tax waiver facility on goods imported by individuals and organizations as relief material for quake victims.

Revising the Directives on Tax Waiver on Relief Material on Friday, the cabinet said individuals and donor agencies said only the individuals and organizations, which hand over relief goods to government agencies, can enjoy tax waiver facility.

Secretary at the Office of the Prime Minister and Council of Ministers Shant Raj Subedi said donors cannot distribute relief material as per the wish if they want to enjoy duty waiver. "If they want to distribute relief material as per their wish, they have to pay applicable taxes," said Subedi. He also said the new provision was introduced after donors started distributed relief materials without reporting to authorities concerned.The new provision, however, is not applicable for UN agencies and other recognized INGOs who have a framework agreement with the government for bringing humanitarian assistance. The new directive will be effective till June 22.

Meanwhile, the government has decided to waive off customs duty on import of equipment for rescue purpose and demolition of damaged structures. But such equipment have to be returned upon completion of rescue and demolition works.

Related story

'Tax waiver for startup' scheme ambiguous