Nepal Rastra Bank (NRB) has extended the timeline for the exporters to claim the subsidy for the exports of goods.
Previously, the NRB had to provide the subsidy amount to the exporters within seven days after getting the amount from the Ministry of Finance. Now, the timeline has been extended to 15 days from a week by amending the prior provision. On Sunday, the NRB wrote to the banks and financial institutions (BFIs) informing them about the recent amendment.
Two months ago, the government decided to give subsidies for the exports of 36 different goods by making the first amendment to the Procedures on Providing Subsidy on Goods Export, 2075. As per the new amendment, 18 types of goods should have 50% value added and 18 others should have 30%.
Those requiring to have 50% value added goods include processed tea, processed coffee, handicrafts (copper, iron, brass and goods with glass as raw materials) and woodcrafts. Processed leather, handmade paper and goods produced from that, processed and semi-processed herbs (including Yarsagumba), processed stone, Allo goods, processed drinking water, processed and semi-processed turmeric, fresh vegetables, flower, processed honey, cardamom and ginger should also have 50% value added.
The new procedures have brought the provision to give subsidy for the third country export of dairy products, fruits and broom grass.
An amount equal to 5% of total export will be given in subsidy to the exporters and 1% additional subsidy will also be given if the export is made by adding 80% value of those goods.
Those required to have 30% value added goods to claim subsidy include clothes and readymade garments produced in Nepal, woollen goods, pashmina, jute and jute products, gold and silver jewellery, semi-processed domestic leather, medicines, polyester/yarn/fibre, slipper, clinker, cement, steel, plywood and others. An amount equal to 4% will be availed in subsidy from the government for the exports of such goods.
