Kathmandu: The Nepali government on Thursday announced a comprehensive business recovery package for industries, traders and commercial establishments affected by the devastating Bhote Koshi floods, offering customs duty exemptions, tax relief, loan restructuring and faster insurance claim payments.
The Cabinet meeting held on Thursday decided to provide a range of relief measures and concessions to businesses and economic activities affected by the floods in the Nepal-China border area, Nepal’s Finance Ministry said in a statement.
The government’s move is aimed at helping businesses revive their operations amid the destruction caused by last week’s floods, which had claimed 1,259 lives as of Thursday evening, while 5,083 people remained out of contact, according to the National Disaster Risk Reduction and Management Authority.
Under the package, businesses whose commercial vehicles and transportation equipment were damaged beyond repair or swept away by the floods will be allowed to re-import similar vehicles and equipment without paying customs duties, after cancelling the registration of the damaged or lost vehicles.
Similarly, businesses whose plants, machinery, instruments and equipment were destroyed will be allowed to import replacements of the same nature and quantity without paying customs duties.
The Nepali government has also introduced a provision to adjust customs duties already paid on goods that were destroyed before reaching their destination due to last week’s Bhote Koshi flood. Importers will be allowed to adjust the equivalent amount of previously paid customs duties if they import similar goods through any customs office within six months.
The package also provides significant tax relief to flood-affected taxpayers. The government announced that it would extend the deadline for filing tax returns and paying taxes until November 11 from mid-October.
Businesses will be allowed to claim the value of destroyed business assets as a one-time expense deduction for tax purposes. As per the Cabinet decision, the country’s central bank will make arrangements to allow affected businesses to obtain loan restructuring and rescheduling facilities.
“Borrowers whose imported goods through Rasuwa Customs were damaged will be able to seek loan restructuring or rescheduling and an extension of principal and interest repayment deadlines based on the nature of their business, extent of damage and insurance claims,” the ministry said.
Banks will also be allowed to provide additional loans to businesses for recovery or employment protection, with payments made directly to the accounts of relevant third parties.
Nepal’s Insurance Authority, the regulator, has also been instructed to simplify the insurance claim process and speed up compensation for flood-related losses.
Surveyors may be deployed through a simplified process to assess damage more quickly. Insurers will be allowed to provide advance claim payments of up to 50 percent based on preliminary assessment reports, according to the Cabinet decision.
(IANS)
