Kathmandu, September 3 (Daily Kiran) : The Nepalese government has taken significant action to support industries and businesses affected by the devastating Bhotekoshi floods. On Thursday, officials announced a comprehensive recovery package that includes customs exemptions, tax relief, loan restructuring, and expedited insurance claims for those impacted.
During a cabinet meeting, the Ministry of Finance confirmed that the measures aim to assist businesses and economic activities in the flood-affected areas near the Nepal-China border. This initiative comes in response to the calamity that has claimed the lives of 1,259 people as of Thursday evening, with 5,083 individuals still reported missing according to the National Disaster Risk Reduction and Management Authority.
Under the new package, businesses whose commercial vehicles and transportation equipment were severely damaged or swept away by the floods will be allowed to re-import similar vehicles and equipment without paying customs duties, following the cancellation of registration for the damaged or lost items.
Additionally, businesses that lost plants, machinery, and equipment will also be permitted to import replacements without incurring customs fees. The government has introduced provisions to adjust customs duties for goods that were destroyed before reaching their destination, allowing importers to claim back previously paid duties when importing equivalent goods within six months.
The relief package also extends crucial support to flood-affected taxpayers. The government has announced an extension of the deadline for tax return submissions and payments from mid-October to November 11. Companies will be allowed to claim the value of destroyed business assets as a one-time expense for tax deductions.
Furthermore, the central bank will facilitate loan restructuring and rescheduling for affected businesses. Borrowers whose imported goods were damaged can request adjustments based on the nature of their business, the extent of the damage, and their insurance claims. Banks will also be permitted to provide additional loans to help businesses recover economically or protect jobs, with payments directed to the accounts of relevant third parties. The Nepalese insurance authority has been instructed to simplify the claims process and expedite compensation for flood-related losses.
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