The National Planning Commission (NPC) in cooperation with the concerned ministries is working on possible modalities to introduce cash incentives for those exportable commodities that show impressive growth in terms of export volume and value. [break]
We are working on certain criteria and conditions to identify exportable commodities that can enjoy proposed cash incentives, Dr Pushkar Bajracharya, member of NPC, told myrepublica.com.
“Strong backward and forward linkages, potentiality to generate employment and strong export potentials are some of the conditions that we are considering as criteria to enjoy the incentive," Bajracharya added.
However, we are paying all possible attentions to curb possible distortions like over valuation and fictitious exports aimed at taking illegal advantages from such incentives, he said and hinted that certain handicraft and agro-commodities can be qualified for such incentives.
Bajracharya also informed that the government is considering ensuring round-the-clock power supply to export-oriented industries if such industries relocate their industrial or production bases to specific areas.
The government has already assured of uninterrupted power supply along with full security arrangements to those industries that will be established in the proposed Export Processing Zone.
Earlier, the government had rejected private sectors´ request to scrap taxes and duties on import of diesel generators for industrial purpose, citing that such imports can be misused.
Apart from that, officials at the Ministry of Finance said that they were also considering some tax incentives like rebate on income tax and reduction in export service charges.
Some of the measures like reducing export service charge to 0.5 percent from 2 percent and providing income tax rebates up to 50 percent can be announced in upcoming fiscal budget, said an official who preferred to be unnamed.
Earlier, the government in June had launched Nepal Trade Integration Strategy (NTIS) that for the first time not only identified 19 commodities and services as key export potential items but also charted out both short to long term strategic bid to expand exportable commodities and services to revive the country´s gloomy exports.
The strategy has identified potential commodities include agro-food items like black cardamom, ginger, honey, lentils, tea, instant noodles and medicinal herbs or essential oils. Handmade paper, silver jewelry, iron and steel products, pashmina products and woolen products have been identified as export potential products under industrial goods.
Likewise, it has tagged tourism, labor, information technology (IT) and business process outsourcing (BPO), health services, education, engineering and hydropower as highly potential export services.
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