Kathmandu, June 3
The textile industry organization has expressed dissatisfaction, claiming that the government has ignored the textile sector’s needs in the upcoming fiscal year’s budget and program.
The textile industry’s demand was not addressed in the fiscal year 2079/80 budget, according to the association, which said at a press conference in Kathmandu on Thursday.
He said that there was no provision in the budget or program to improve competition between foreign textiles made in Nepal and illegally imported foreign textiles.
The association’s president, Shailendra Pradhan, stated that it was vital to keep track of low-invoiced garments on the market and bring enterprises that were not registered for VAT into the tax net.
Changes in tax rates have been demanded by the union in order to make the textile sector
more viable and exportable.
It has demanded that the 70% value added tax raised on sales granted to the Nepali textile
sector by fiscal year 2074/75 be refunded or that a 5% tax be imposed, similar to the GST in neighboring India. According to the union, this will eliminate irregularities in yarn and textile sales while also increasing income.
Similarly, the group has demanded that the textile industry that uses electricity be included in the VAT system. According to the group, this would minimize value added tax inequity and non-imposition of value added tax on sectors manufacturing similar textiles, raise revenue, and reduce healthy competition and other distortions.
Similarly, the group has said that the cost of importing textiles and textile products is cheaper than the cost of textile raw materials. There should be a provision to include the VAT number, and this has made it clear that the trading of textiles and textile items would become lawful, increasing government income.
