Home / Knowledge / News / Apparel/Garments / Nepal garment sector wants end to 'advance penalty'
Nepal garment sector wants end to 'advance penalty'
14
May '12
The Nepal Government should end the 'advance penalty' system applicable for raw material imports by garment manufacturers in the 2012-13 budget, Garment Association Nepal (GAN) has suggested.

The association claimed that they want the Government to realize and remove the difficulties that the garment entrepreneurs in the country face due to the advance penalty system. GAN has also forwarded a copy of the same suggestion to the Ministry of Finance with an urge to resolve the problems faced during import of raw materials by the country's garment sector.

While importing raw materials, garment entrepreneurs need to pay an additional 25 percent charge, other than the 13 percent Value Added Tax (VAT) and 15 percent customs duty. The additional charge is aimed at covering losses during imports.

Garment entrepreneurs have been paying such advance penalty ever since implementation of the bank guarantee system.

Though the sum so paid is refundable, it raises the cost of production by almost 50 percent, following which Nepali garments are priced comparatively higher in global market.

GAN believes that the Nepali Government can help revival of the country's garment export industry by ending the advance penalty system.

Garment entrepreneurs in Nepal each year import millions of Nepali rupees worth of raw inputs, and the extra penalty raises their cost of production. GAN thus expects of the Government to seriously consider its suggestion and act positively for revival of the industry.

The association stated that there are several issues concerning the industry that have been overlooked for over a decade, but this time they only want the Government to incorporate their only suggestion in the forthcoming budget.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search