The cabinet's Bills Committee took the decision on Wednesday.
The bill proposes number of incentive packages to the industrial sector, aiming to boost industrial growth and encourage export.
The much-awaited law, which will replace Industrial Enterprise Act 1992, is believed to be a landmark achievement for the private sector.
The Ministry of Industry said in a press statement issued on Wednesday that a provision in the bill states that industries established in state-owned industrial estates will not have to pay integrated property tax levied by local bodies. Likewise, export based industries will receive refund of Value Added Tax (VAT) based on the volume of export.
The bill states that industries will not be nationalized and that the government will provide needful security to the industries.
Minister for Industry Mahesh Basnet believes that the proposed law will transform the country's industrial sector. He said that the bill remained undecided in the cabinet for over a month due to differing views on incentive packages proposed for the industrial sector.
The law is expected aid the ailing industrial sector recover as it clears confusions about paying incentives to industries according to Financial Act issued every year and other laws.
"The bill has also stated incentives will be provided to industries as per the Financial Act and Customs Act 2008 and Industrial Enterprises Act, whichever is the minimum," added Basnet.
Likewise, the bill states that small industries will not be charged any registration fee. Similarly, they will be exempted of income tax for the first five years.
Hydropower projects, agriculture and forest based industries, construction industries, export-based industries, tourism industry, mines, petroleum, cement, paper, chemical fertilizer industries and cottage industries, are the prioritized industries, according to the bill.
Related story
Govt invites proposals for startup enterprise loans
-1200x560-1779450784.webp)