Print Edition - 2015-03-12 | MONEY
No nationalisation of industries
- Proposed Industrial Enterprises Act
Mar 11, 2015-
The government has assured none of the private sector industries registered under the proposed Industrial Enterprises Act would be nationalised.
According the bill, industries operating inside industrial zones would enjoy waiver of integrated property tax, including other local taxes. On the export front, export industries would get VAT refund.
The government would provide necessary security for the industries. It would not charge fees for the registration of small industries. The proposed Act also talks about waiving off income tax for five years for small-scale industries.
In a bid to encourage women’s involvement in industrial and business sectors, the bill has proposed waiving off 35 percent industry registration charge for industries run by women entrepreneurs.
The government would accord priority to women entrepreneurs willing to establish industries inside industrial zones and necessary loan would be provided for them for exports.
Industries have been categorise under five categories -- small enterprises, cottage industry, small industry, medium industry and large industry.
The Cabinet’s Bill Committee on Wednesday decided to table the bill related to the Act at the Parliament.
It is the Act the business community have long been demanding. “Due to the disagreement between finance and industry ministries, we have not been able to proceed ahead with the draft for a long,” said Industry Minister Mahesh Basnet, at a press statement.
The Finance Ministry had expressed reservations over some clauses of the draft bill, which has been cleared now, the ministry statement read.
Basnet said after the bill is endorsed, it would help the industrial sector grow. He added previous incentives offered to industrial sector under the Financial Bill and Custom Act will be scrapped under the new policy.
The proposed Industrial Enterprise Act has defined nine manufacturing, service and industrial sectors as “national priority” areas. Energy, agriculture and forestry, construction and export-oriented industries have been categorised as priority areas. Specific sectors of tourism, including adventure tourism, rural and eco tourism, golf course, polo, pony trekking, trekking, water rafting, MICE tourism, sports tourism, religious tourism, cultural tourism, park construction and wildlife conservation, have also been categorised as priority areas.
Under the production sector, minerals, petroleum and natural gas and fuel exploration industries, industry producing cement using domestic clinkers and local papers have been categorised as eligible for the government’s incentive.
In the agriculture sector, sugar production, organic and chemical fertiliser production, powdered milk producing industry, farm machinery production. Pharmaceutical industry, processing of waste materials and electric vehicle production and small and cottage industry have also been defined as priority areas.
Published: 12-03-2015 09:41