Nepal: Garment body demands exemption of all taxes for exporters

The Nepalese garment export industry is touching new lows with each passing year. Since the passing of WTO agreement in January 2005, Nepal has lost the quota arrangement it had with the US and other countries, due to which it could average decent export figures in previous years.
Now with the unfolding of the Tsunami like economic crisis and the resultant slowdown, shipments from the garment industry have dipped further in January, which have fallen by 73 percent, when compared with the same period of last year.
The Garment Association of Nepal (GAN) in a memorandum to the government has requested it to exempt garment exporters from taxes of any kind to boost exports from the country. This they say will create more employment opportunities for the workers of the industry.
Fibre2fashion spoke to provide Mr. Udayraj Pandey, First Vice President, GAN to learn more about the logic behind the demand. He said, “We are asking for total third country exports from Nepal including garments, carpet, pashmina etc., should be tax free including income tax”.
He added by saying, “Due to recession in US & Europe, exports have declined. So to keep the factories active and maintain jobs of workers, there should be exemption from all taxes. We have also asked for setting up of an Export Promotion Zone, where competitive products can be churned out"