Nepal Gives Cash Incentives To Garment Exports To Promote The Development Of Garment Industry

After the Ministry of Commerce gave instructions to the Ministry of finance, Nepal

You may get 2% cash incentive when exporting.

Josh, Secretary of the commercial supply department, said that the commercial supply department presented a proposal to the Ministry of finance to instruct the cash incentive process.

The proposal also includes a proposal to allow 2% cash incentives for the clothing industry.

Josh said the commercial supply department also asked the Ministry of finance to expand to India.

The cash incentive mechanism of industrialists.

This is because some exporters avoid using bank channels when exporting garments to India, which leads to fraud.

The Ministry of Commerce supplies the Ministry of finance to instruct the Ministry of finance.

Other industrial sectors other than 2-3% or 2-4% offer cash incentives.

Josh added that they asked the Ministry of finance to give two types of cash incentives instead of giving three types of cash incentives, 2%, 3% and 4%.

After the cabinet made its decision in June 9, 2011, the government gradually formed the standard of cash incentives. According to this standard, the exporters' 30-50% value added products will be eligible for 2% cash incentive, while the products that export 50-80% added value can get 3% cash incentives, and those whose value is more than 80% will receive 4% cash incentives.

Since the launching of the cash incentive mechanism, there has been a disagreement between the government and industrialists, because the process of determining the added value of products is very complicated.

Referring to several cash incentive complications and a small number of recommendations, the Ministry of industry has asked the Ministry of Commerce and industry to elaborate a new module of cash incentive process.