Kathmandu. Entrepreneurs in the private automobile sector have welcomed the relief package announced by the government. Issuing a press release today, NADA Automobiles Association of Nepal said that the relief package brought by the government in difficult times has become a source of encouragement for the industrialists.
Earlier, the team led by NADA President Karan Kumar Chaudhary had met Prime Minister Sushila Karki and Finance Minister Rameshwor Khanal and urged them to bring a special relief package to revive the automobiles and businesses that were severely affected by the agitation. He said that the government’s decision to address his request with high priority has boosted the confidence of industrialists and entrepreneurs.
NADA has stated that the following provisions have also boosted the confidence of the auto entrepreneurs
.
1. Arrangement to pay 50 percent of the damage caused to buildings, vehicles, goods, equipments etc. in advance on the basis of the preliminary report of the insurance surveyor.
2. Insurance companies will provide up to 50% advance payment in case of delay in the process of reinsurance.
3. Provision of minimum 80 percent loan to value for purchase of commercial vehicles or transport vehicles damaged during the agitation.
4. 50% discount on customs duty and excise duty while import of goods damaged by arson or vandalism.
5. Provision to count the amount contributed to the National Reconstruction Fund as tax deduction.
6. Facility to deduct cost expenses and deduct tax on the basis of valuation on uninsured stocks.
7. Provision to extend the principal and interest payment period for the agitated borrower industries and businesses.
8. Facility to provide concessional loans to the affected industries and businesses.
9. To secure employment, the TAG_OPEN_strong_40 Payroll Protection Scheme was introduced and concessional loans with 2 percent subsidy.
10. Government offices, banks and revenue collection agencies will remain open on holidays other than Dashain for ease of doing business.
Positive Impact and Expectations of NADA
All these provisions are expected to provide direct relief to the affected automobile industrialists and businessmen. Advance claim payment, credit facilitation, duty exemption and tax concession will go a long way in overcoming the immediate difficulties. Also, schemes like TAG_OPEN_strong_38 Payroll Protection Scheme help in social stability as they secure the employment of employees. It will.
