Budget to affect 80 factories

BIRATNAGAR, July 15: Industrialists have said more than 80 factories along the Morang-Sunsari corridor are all set to face crisis due to rise in customs duty and excise duty in the raw materials of vegetables ghee, edible oil and plastic, announced in the new budget. Organizing a press conference on Wednesday, Morang Trade Association said eight vegetable ghee factories, 50 plastic factories and 22 mustard oil factories would be badly affected by the new revision in the tax. [break]



Mahesh Jaju, the president of the association said competitive power of local industries will be weakened in the coming days as the budget has increased tax on import of palm oil -- the main raw material for vegetable ghee -- from one percent to five percent in addition to scraping of the provision of 50 percent exemption on VAT.



Ganga Bishak Rathi, the vice-president of Pulse, Rice and Oil Producers Association also said oil mills would be severely affected due to the withdrawal of 50 percent exemption of VAT on oilseeds imported from India, the major suppliers of rapeseeds.



Plastic producers also criticized the government for imposing five percent excise duty and 35 percent customs duty on imports of raw materials of plastic products.

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