May 1 : The government has unveiled the second phase of stimulus relief package targeting the workers of both the formal and informal sectors along with the businesses bedeviled by the coronavirus pandemic and subsequent lockdown.
The stimulus package, which was released on Thursday (April 30), is zeroed in on the relief distribution to these workers, relaxation on tax payment period and availability of loan facility for the affected businesspeople.
According to the government, the informal sector workers who have been rendered jobless by the ongoing crisis ill be employed in public works related to all three levels of government- local, provincial and federal. They will either be paid in cash on a daily basis or provided with foods. The local governments are entitled to fix the wage for such workers. At the same time, unemployed workers who refuse to work in the given areas will get 25 per cent of the relief or wage that a worker who decides to work gets.
When it comes to the workers in the formal sector, they each will be provided with 50 per cent of the total salary till Baisakh and gradually compensated with the remaining 50 per cent salary after the resumption of their firms. These firms will get loans from banks and financial institutions at subsidised rates in case they fail to provide the salary to their employees.
In order to facilitate the relatively big business houses facing difficulties in paying workers, the government has announced the facility of subsidised loan based on collateral. The NRB will also raise the size of its refinancing fund to Rs 100 billion for supporting such houses.
While giving continuity to the provision of 25 per cent rebate on electricity tariff to customers who consume up to 150 units, the government has also announced 15 per cent rebate on electricity tariff for those consuming up to 250 units a month throughout the lockdown period. The Nepal Electricity Authority will provide necessary subsidy on demand charge and electricity tariff to industries that have remained shut during the lockdown.
Moreover the government has also deferred tax payment period of all taxes — income tax, excise duty and value added tax — for the public and businesses for the months of Falgun and Chaitra till June 7.
According to the government, the payment of electricity, water and telephone bills for the months of Falgun and Jestha till Ashad (mid-July) will be deferred. It has also decided to give 25 per cent subsidy on transportation cost to farmers to transport their produce to nearby markets. Similarly, the government has also announced to monitor through local levels the implementation of its previous decision that asked the landlords to exempt rent for tenants for the month of Chaitra.
