The Department of Industry (DoI) has proposed the Nepali Government to provide cash incentives worth NPR 1.28 billion to 508 exporting industries.
The DoI proposed the amount based on the goods exported by the mentioned industries in the FY 2020/21.
In FY 2020/21, the Himalayan nation exported goods worth NPR 141.12 billion. Edible oil is the most exported product, observing exports worth NPR 55.5 billion. It is followed by tea and coffee, with exports worth NPR 11.76 billion. Textile, woolen carpets, and ready-made garments are in the next positions.
Nepal Rastra Bank will provide the incentives as per the DoI recommendations, on par with the working guideline on cash incentives on exports.
|Export Product||Cash Incentive (% of export value)|
|High export potential items listed in the NTIS||3-5%|
|Processed tea, large cardamom, ginger, leather goods, and processed herbs and oil products||5%|
|Pashmina products, textiles, woolen carpets, and yarns made of polyester, viscose, acrylic, and cotton||3%|
In a bid to enhance exports, the Nepali Government started offering cash incentives of 1-2 percent of export value to the exporting industries from the FY 2011/12. Earlier, such incentives were limited to only third country exports.
From June 2019, the government has started providing incentives for 27 products exported to India.
Stay Tuned to NepaliSansar for Latest Nepal Business News!