KATHMANDU, OCT 16: Nepal’s exportable goods will receive a cash incentive of up to 8 percent of the export value, with the government endorsing a guideline from Friday.
The government through the budget for 2022/23 announced to increase the cash subsidy to 4 to 8 percent from the existing 3 to 5 percent. According to the government rule, the goods to be exported should have a minimum value addition of 30 percent within the country to be eligible for the cash incentive.
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In the new rule, a total of 18 goods have been listed in the category to get the cash incentive. These include cement clinker, cement, steel, footwear, processed water; information technology related service and business process outsourcing products.
If the goods and services that fall under the given category have a value addition of 30 percent within the country, they will receive an export subsidy of four percent. If these goods have a value addition of over 50 percent, they receive a cash subsidy of five percent.
If any goods upgrade in its value addition by a notable amount than before, they will receive an additional one percent of export subsidy. This benefit will be available also for those goods that are able to increase their exports by 20 percent in the successive year. The goods that secure export earnings of more than Rs 500 million will receive eight percent of the excess amount in their export revenue.
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