FNCSI welcomes fiscal 2020-21 budget

Kathmandu, May 30

Small and cottage industrialists have welcomed the budget announced for the next fiscal year 2020-2021.

Issuing a statement today, the Federation of Nepal Cottage and Small Industries (FNCSI) has appreciated the government for addressing their issues while announcing the budget for next fiscal. Prioritising the small and cottage industries, the government has taken a step towards economic prosperity, stated the statement.

“Small and cottage industries have been requesting the government since very long to provide loans at minimum interest rate to encourage new investors. After all the effort, the government has addressed our issues announcing to provide loans to new investors at two per cent interest rate,” said Umesh P Singh, acting president of FNCSI, “The budget has announced of relief measures for the small industries affected during the lockdown period that will aid in their recovery.”

FNCSI has also welcomed the government’s announcement of income tax exemption for small and cottage industries.

“Mostly women are involved in small and cottage industries of the country. In this situation, the government’s announcement of extending income tax exemption period for women-run enterprises has encouraged women entrepreneurs. Around 11,000 women are directly involved in small and cottage industries at present,” reads the statement.

The budget has also brought programmes to promote local products of the country that will surely help small industries to grow, adds the statement.

The FNCSI, however, has said that the budget will be fruitful only if the government is able to effectively implement all the announced measures.

“Agriculture, small and cottage industries, hotels and tourism sector have been badly affected due to the COVID-19 pandemic, and the government’s announcement on tax exemption, discount on utility bills, arrangement of loans at low interest rates are some of the positive sides of the budget,” reads the statement.

Prior to this, the government had only been prioritising big industries and this is the first time that it has addressed almost all the demands of small industries, said FNCSI Acting President Singh.

He further added that the FNCSI will soon meet the government officials to discuss effective implementation of the budget.

A version of this article appears in e-paper on May 31, 2020 of The Himalayan Times.