Due to sustained criticism from exporters, the government is preparing to revise the current cash incentive scheme. The cash incentive facility was simplified recently with the decision to allow a minimum of one per cent and a maximum of two per cent cash incentive, depending on the value addition of the product. But exporters claim that the simplified cash incentive is unsatisfactory. According to joint secretary at the ministry of commerce and supplies (MoCS) Jib Raj Koirala, ministry will revise cash incentive programme. He also said that during the revision, ministry might increase or even decrease the existing cash incentive percentage. Pashmina industrialists and garment exporters have said that the cash incentive facility has failed to meet their expectations and it needs to be revised. Nepal Pashmina Industries Association (NPIA) has asked the government to fix a minimum of 10 per cent cash incentive on exportable products that have the collective trademark. At present, the government has fixed a cash incentive of two per cent for Chyangra Pashmina. NPIA has urged the government to revise the current cash incentive facility that pashmina products are entitled to. It has called for a new system that will allow 10 per cent cash incentive on exportable products that have the collective trademark. Nepali carpets being major exportable products has lost quality markets due to lack of proper cash incentive and the absence of a trademark. The government has fixed a cash incentive of two per cent for hand-knotted carpets. Carpet exporters have urged the government to support the registration process of a collective trademark and promote it in the international market. The government has only fixed one per cent cash incentive for readymade garments. Earlier, it used to receive a cash incentive of two to three per cent. According to garment exporters, the cash incentive facility given to the garment sector is unjustified and needs to be revised. The amendment made in the cash incentive process has failed to encourage the overall export sector, say exporters. Government has allocated cash incentive of two per cent for handicrafts and wooden crafts. The Cash Incentive Regulation 2070 has set two per cent cash incentive for processed coffee, semi-processed leather, handicrafts and wooden crafts, crust, handmade paper and its products, refined honey, tea, carpets and woollen products, pashmina and fibre products, and refined herbs. Likewise, instant noodles, polyester fibre viscous yarn, polyester textile yarn, readymade garments, vegetable ghee, transformers, semi precious stones, gold jewellery, turmeric and dry ginger have been receiving one per cent cash incentive.
Posted on: Tue, 27 Aug 2013 05:46:11 +0000
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