A taskforce formed to recommend facilities to be offered to businesses hit hard by the April earthquake and India’s trade blockade has recommended relaxations in electricity demand charge and bank interest.

The taskforce, headed by Revenue Secretary Rajan Khanal, has recommended the government waive a certain percent of the electricity demand fee—minimum charge industries have to pay even if they remain closed—for the period of the closure of the industries.

It also suggested the government subsidise interest on loans taken by the industrialists to some extent for the period of industrial closure due to the earthquake and blockade, but for those hit by the quake, it recommended only refinance facility given the higher impact of the blockade, Khanal said.

The panel, represented by various ministries and presidents of  three private sector bodies including Federation of Nepalese Chambers of Commerce and Industry (FNCC), Confederation of Nepalese Industries and Nepal Chamber of Commerce, submitted its report to Finance Minister Bishnu Poudel on Monday.

According to Khanal, the taskforce also the recommended the government take diplomatic initiatives

for the waiver of detention and parking fees, godown/warehouse rents and demurrage fees the Nepali industrialists and traders have to pay to shipping agents and Indian customs offices.

The importuned have been forced to pay such charges for Nepal-bound cargos parked at various locations for months due to the Indian embargo. The private sector say such charges have crossed Rs7 billion.

With the Nepali customs also charging delay fees, Khanal said the government has already waived such charges.

Regarding tax, the taskforce has suggested the private sector be allowed to pay taxes in instalments. “We concluded that allowing business to pay taxes in instalments instead of deferring the deadline is a better idea,” said Khanal, adding postponing the tax payment deadline would result in additional burden for taxpayers as they have to pay a huge amount at once. Currently, the government has deferred the tax payment deadline. Receiving the report, Finance Minister Poudel said he would take concrete decisions over the recommendations related to his ministry and take a proposal to the Cabinet on recommendations that need Cabinet decision.

FNCCI President Pashupati Murarka, who is also a member of the taskforce, said the recommendations were made considering the needs of the private sector and limitations of the government. “If the recommendations are implemented, it will give some boost to the private sector’s morale,” he said.