Kathmandu. The government has announced a relief and relief package for industrialists, traders and business establishments who have suffered financial losses due to the devastating floods.
The package approved by the cabinet meeting on the proposal of the Ministry of Finance will provide facilities to the entrepreneurs in the areas of customs, tax, loan and insurance.
According to the first phase package brought by the government, all customs duty on the import of commercial vehicles, transport vehicles, plants and machinery that have been swept away by floods or damaged to such an extent that it cannot be repaired will be waived.
After paying the customs duty, in the case of goods destroyed by the floods on the way, the amount equal to the duty already paid will be adjusted for the re-import within 6 months. The businessmen who are directly affected by the floods as small taxpayers have been given complete exemption from income tax for the income year 2082-83.
The deadline for submitting VAT, income tax and excise duty details and tax amount to be paid within the months of August and October 2008 has been extended till November 9, 2008. The Ministry of Finance has said that arrangements will be made to exempt property tax, business tax and map pass fees in coordination with the provinces and local levels.
Special facilities will be provided for borrowers to restructure and reschedule loans and extend the maturity of principal-interest payments. For all types of borrowers affected by floods, the minimum interest rate will be fixed at the bank’s base rate for 1 year. The minimum interest rate will be maintained by adding a premium of only 5 percent.
Banks will provide additional loans at the base rate to repurchase damaged equipment and vehicles and to continue their business.
In order to maintain cash flow with the businessmen immediately after the damage, it is mandatory for the insurance companies to pay up to 50 percent of the claim in advance on the basis of preliminary evaluation.
In order to eliminate dilly-dallying, arrangements have been made for deploying surveyors through simplified process and settling insurance claims through concise procedures.
A legal arrangement has been made to recognize the amount provided from the Corporate Social Responsibility Fund to the Prime Minister Natural Disaster Relief Fund as CSR expenditure so as to involve the private and corporate sector in the rescue and relief in this hour of disaster.
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