Nepal handicraft exporters seek special package in Budget

09 Jul '12

2 min read

In their 11-point suggestion to the Government for the Budget 2012-13, the Federation of Handicraft Associations of Nepal (FHAN) sought introduction of a special package for the benefit of the handicraft sector and to encourage exports.

FHAN urged the Government to identify handicrafts as a foreign exchange earning sector, and facilitate exporters by waiving taxes on handicraft exports.

Government support is vital for growth of the country’s export sector, for which it is necessary that the Government permits duty free exports and waives the Value Added Tax (VAT), FHAN said.

It urged the Government to amend rules pertaining to VAT on goods that are returned after exports.

To enhance the competitiveness of the export sector, the Federation suggested that the Government should withdraw VAT on non-documented and merchandise exports through courier services.

Handicraft exporters in Nepal need to import materials like raw wool, Pashmina, silk thread and such other items that are used in preparing handicraft items, but 90 percent of the exporters could not bear their cost. The Federation urged the Government to allow raw material imports at same rate as those proposed at the time of import orders.

It also urged the Government to reintroduce the tax and VAT waiver facilities for cottage industries, as earlier mentioned under the Industrial Enterprise Act.

Also, raising objections against present complex process of cash incentive facility, FHAN called on the Government to revise the cash incentive process, to make it simpler and raise its effectiveness.

Fibre2fashion News Desk - India

More Textiles News - Nepal...