Nepal | August 05, 2020

Textile entrepreneurs threaten to shut business from Nov 1

Urges govt to review VAT refund cancellation decision

Himalayan News Service
Share Now:

Kathmandu, October 24

Citing that the government overlooked the concerns raised by textile entrepreneurs, domestic textile manufacturers have warned of shutting their businesses across the country from November 1.

A recent meeting of the Nepal Textile Industries Association (NTIA) has decided to shut all textile factories from next week if the government fails to address their issues, informed Sailendra Pradhan, president of the association.

Textile manufacturers are especially against the cancellation of the Value Added Tax (VAT) refund system in textile, which came into effect from this fiscal, stating that the decision has further deteriorated the competitiveness of Nepali textiles in the domestic as well as international markets. They had repeatedly urged the government, particularly the Ministry of Finance (MoF), to review its decision. However, since the government has shown no signs of addressing the aforementioned issue textile manufacturers have threatened to shut down their businesses.

The textile manufacturers had been enjoying 70 per cent VAT refund until last fiscal year but the government had scrapped such provision through the budget speech for 2018-19 fiscal year.

“Amid Nepali textile products already facing a hard time to compete with foreign textiles, cancelling VAT rebate system in the sector has further hit the competitiveness of Nepali textiles,” informed Pradhan, adding that though MoF had earlier provided assurance to resolve the problems being faced by textile manufacturers, it has not done anything substantial till date.

The Finance Ministry had formed a committee on July 31 to look into concerns raised by textile manufacturers. The committee was given the mandate to look into problems plaguing the domestic textile industry and come up with effective suggestions for the government. However, Pradhan said that the committee had not been able to accomplish its task within the stipulated time and textile manufacturers had thus decided to warn the government of closing their businesses.

As per Pradhan, the government should either review its decision regarding the cancellation of VAT rebate on textile or pay back the equivalent amount to textile manufacturers through any other means.

Similarly, textile manufacturers have also urged the government to curb the illegal import of foreign textile products worth billions of rupees in domestic market.

Meanwhile, officials at the Finance Ministry said that necessary decisions will be taken on the basis of the recommendation of the committee. “However, the industry minister should also look into the issues raised by textile manufacturers and suggest MoF for further actions,” opined an MoF official.

 


A version of this article appears in print on October 25, 2018 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal COVID-19 Update: 259 new cases, 65 recoveries, one fatality recorded today

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 406,494 tests through Polymerase Chain Reaction (PCR) method have been carried out, w Read More...

Nepal logs one more COVID-19 fatality; death toll reaches 58

KATHMANDU: One more person has succumbed to the coronavirus infection, confirmed the Ministry of Health and Population (MoHP) at its regular media briefing, on Tuesday. A 77-year-old male from Biratnagar Metropolitan City-5, Morang, has died from the highly contagious disease on Monday. The pa Read More...

Reimpose lockdown, issue curfew order if necessary; strictly implement security protocol: Experts to PM Oli

KATHMANDU: At a meeting called to discuss government's further steps to contain the spread of Covid-19, experts suggested that the government should reimpose lockdown to ensure that the pandemic is checked. Some health experts even suggested Prime Minister KP Sharma Oli, who had convened the meeting Read More...

Bangladesh board denies not paying players ICC prize money

DHAKA: The Bangladesh Cricket Board (BCB) on Tuesday dismissed allegations from a players' body that its international cricketers have not been paid all their prize money. The Federation of International Cricketers' Associations (FICA) said in a report that the Bangladesh players have not bee Read More...

Prominent Muslims to grace Hindu temple ceremony on contested India site

LUCKNOW: In a gesture of reconciliation, two prominent Muslims who lived through deadly riots following the razing of a mosque in northern India in 1992 plan to attend the foundation-laying ceremony for a Hindu temple on Wednesday on the same site, they said. Prime Minister Narendra Modi, who Read More...

Kathmandu valley logs highest single-day Covid-19 cases on Tuesday

KATHMANDU: Kathmandu Valley on Tuesday registered the highest single day reported cases of coronavirus infection in the the three districts -- Kathmandu, Lalitpur and Bhaktapur. In the last 24 hours, 48 infections were reported in Kathmandu while 13 cases surfaced in Bhaktapur. Likewise, one pers Read More...

Champions League, Napoli, Lorenzo Insigne

Napoli confirm Insigne injury ahead of Champions League tie at Barcelona

ROME: Napoli confirmed on Monday that forward Lorenzo Insigne had suffered a tendon injury in their 3-1 win over Lazio in their final Serie A game, casting doubt on his participation for Saturday's Champions League tie against Barcelona. Captain Insigne, who scored a penalty in the 54th minute Read More...

China, coronavirus outbreak; WHO, Global emergency

Anxious WHO implores world to 'do it all' in long war on COVID-19

GENEVA: The World Health Organization warned on Monday that there might never be a "silver bullet" for COVID-19 in the form of a perfect vaccine and that the road to normality would be long, with some countries requiring a reset of strategy. More than 18.14 million people around the world are r Read More...