KATHMANDU: Nepal Textile Industries Association (NTIA) has said that Nepal’s textile industry is close to collapse as no stimulus package has been offered in the 2020-21 budget for it. NTIA stated that the textile sector is not included in the 44 industries allowed to open partially, even though it had been severely hit by the lockdown with 95 per cent of the factories closed.
The textile industry did not receive the incentives announced in the past and even the existing ones have been taken away, the association said.
The government had proclaimed that the textile industry would get interest subsidies, but it did not happen. And now the budget statement says the electricity tariff exemption has been removed. “The association is shocked and surprised by this announcement,” it said.
In 2014 alone, investors pumped in another Rs1.5 billion, encouraged by the government announcement that they would get a 70 per cent value added tax refund.
“We have reached a decision to close the industry as the government has failed to address a single demand,” said the association.
There are 250 small and large textile factories operating in the country that employ around 50,000.
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