Garment Association Nepal reviews 2010-11 budget

29 Nov '10

2 min read

Garment Association Nepal (GAN) has expressed its anguish over the government's decision of not including its demands in the budget for the current fiscal. It placed several demands before the government like elimination of the 25 percent penalty on bank guarantee, raising the time limit for producing goods from 14 to 18 months from the date of importing the inputs, setting up a Special Economic Zone for apparel and to press for earning a duty-free access for Nepali garments in US markets.

However, GAN has given its approval for a few provisions of the current budget that are likely to aid the country's industrial growth.

GAN welcomed the assurance provided under the budget to boost the growth of private sector by way of creating investment friendly atmosphere in the country, and added that the incentives for industries with over 100 workers, health and security facilities for industries with over 500 workers and providing diesel to the manufacturing industries at subsidised rates are some of the constructive points of the budget.

Meanwhile, it even appreciated the budgetary provision of providing export industries with two to four percent of their overall foreign exchange earnings as cash incentives and also the provision of offering 25 percent tax rebate on their total earnings.

Fibre2fashion News Desk-India

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