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    Nepal Breaking NewsBusinessIndustrialists have expressed their dissatisfaction with the government's discriminatory approach in the...

    Industrialists have expressed their dissatisfaction with the government’s discriminatory approach in the steel business

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    A move by Finance Minister Janardan Sharma to increase local production in the name of decreasing the countryR7;s trade imbalance has put the country’s Rs 100 billion steel industry in jeopardy, according to reports.

    In response to the governmentR7;s decision to increase excise duty and other taxes through the Replacement Bill of the budget legislation, industrialists predict that 24 steel mills in the country will go out of business as a result. According to businessmen, Finance Minister Sharma’s move to this effect will help only six of the thirty steel mills currently operating in Nepal, despite the that there are 30 total.

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    They claim that if the verdict is not changed, 24 industries will be forced to close their doors.

    It has been included in the amended budget that no customs or excise duties will be paid on the import of sponge iron, which is the raw material necessary for the production of iron rods by melting the sheets, as a result of the provision being established. In contrast, the customs charge has been increased Rs 4.75 per kilogramme and Rs ,6 per kilogramme to Rs 2,500 per kilogramme.

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    The government has increased the excise duty on billet imports in exchange for a on the import of sponge oil, and the industry will be forced to close as a result of the rise in the price of steel, which has caused the industry to close.

    In the steel industry, sponge iron and billet are both raw materials, and the steel industries been importing sponge iron and billet in order to manufacture iron products such as bars. Only six industries in Nepal make use of sponge iron, with the rest relying on billet.

    By granting tax and excise exemptions to only six sectors, according to Kiran Sakha, vice president of the Rolling Mills Association, the government is attempting to close the remaining 24 industries. Sheet metal is superior to sponge iron in terms of durability. However, by importing billet, the government has placed steel-producing industries in jeopardy, according to him.

    Anjan Shrestha, director of Siddhi Laxmi Steel, stated that the government has implemented a policy that will a negative influence on the private sector, despite the that the government is attempting to establish an investment-friendly climate. β€œIt is not the appropriate moment to introduce different policies in the same fiscal year twice. β€œBefore proposing any new policy, the government should consult with the private sector,” he stated.

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