Himalayan News Service

Kathmandu, March 20:

Government bodies — namely Trade Promotion Centre (TPC) and Export Promotion Committee (EPC) — have totally failed to boost export, alleged exporters. Namgyal Lama, president of Nepal Freight Forwarders Association (NEFFA), who recently participated at India’s Handicraft Gift Fair and Textiles, said that Nepali export sector could get a boost if government worked seriously making its ‘institutions’ more active. Handicraft fair and textiles is held twice yearly in India, but EPC hardly meets once a year. In such a situation, how can the export be promoted, Lama questioned. He was of the opinion that EPC and TPC should work jointly to bring more buyers by giving incentives in terms of products, special discount in air tickets including hotel accommodation as Nepal does possess world-class handicraft products.

In India, more than 100 thousand buyers visit handicraft fair at one go. “If Nepal government could organise handicraft fair effectively, the buyers would also come to Nepal as we have the best handicraft, carpet and garment products compared to any parts of the globe,” said Lama. Surendra Shrestha, another exporter who runs Sweater and Pashmina House at Thamel said that the government should be able to invite tourists to Nepal, which will have multiplier impact in our businesses. Shrestha also said that India gives ‘financial bonus’ to its exporters ranging from two per cent to 20 per cent of their total exports to boost the sector. Inversely, Nepal imposes taxes on exporters in earnings ranging from 15 to 25 per cent besides VAT, Shrestha complained. “How can we boost export in such a critical situation.”

“We have to pay certain charges to Nepal Chamber of Commerce (NCC) and Handicraft Association, Nepal (HAN) while exporting goods, informed Shrestha.

What he said is that government should remove taxes if it wants to boost export, as the environment is trickier at the time. He is afraid that the VAT office is planning to raid Thamel area despite the fact that they are being displaced day-by-day due to slack in business. Lama said administration should take initiatives in holding special fairs regularly inviting ‘foreign buyers’. However, they have to be given facilities to come to Nepal, he suggested. He said that foreign buyers are losing interest in Nepali products, as they are unknown of the fact that Nepal also produces world-class handicraft products.

Indian trade promotion organisations have also shown interest to support Nepal for holding fairs but the government, including Federations of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Chamber of Commerce (NCC) should work together. “Our export is declining by over 30 per cent every year. And India’s export is increasing by over 10 per cent annually.”