Government offers tax breaks, duty exemptions and loan relief to firms hit by devastating Bhote Koshi floods…reports Asian Lite News Desk
Nepal’s government has announced a comprehensive recovery package for businesses devastated by the Bhote Koshi floods, offering customs duty exemptions, tax relief, loan restructuring and faster insurance payouts.
The Cabinet approved a series of relief measures aimed at helping industries, traders and commercial establishments resume operations following the devastating floods in the Nepal-China border region, the Finance Ministry said.
The measures come as authorities continue to assess the scale of the disaster. According to the National Disaster Risk Reduction and Management Authority, the floods had claimed 1,259 lives by Thursday evening, while a further 5,083 people remained unaccounted for.
Under the new package, businesses whose commercial vehicles and transport equipment were destroyed or swept away will be allowed to import replacement vehicles without paying customs duties, provided the registration of the damaged or lost vehicles is cancelled.
Companies whose factories, machinery, instruments and other equipment were destroyed will also be permitted to import replacements of the same type and quantity free of customs duties.
The government will additionally allow importers to adjust customs duties already paid on goods destroyed before reaching their final destinations. Businesses importing similar goods through any customs office within six months will be eligible for equivalent duty adjustments.
Taxpayers affected by the floods will also receive additional time to file returns and settle tax obligations, with the deadline extended until November 11 from mid-October.
Businesses will be allowed to treat the value of destroyed assets as a one-time expense deduction for tax purposes.
Nepal’s central bank has also been directed to facilitate loan restructuring and rescheduling for affected businesses. Borrowers whose imported goods were damaged while passing through Rasuwa Customs will be eligible for revised repayment schedules based on the nature and scale of losses and insurance claims.
Banks will also be permitted to provide additional recovery loans and financing to help businesses protect jobs and restart operations.
Meanwhile, the Nepal Insurance Authority has been instructed to simplify claims procedures and accelerate compensation payments. Insurers will be allowed to make advance payments of up to 50% based on preliminary damage assessments.
The government said the package was designed to ease the financial burden on businesses and speed up economic recovery in communities hit by one of the country’s most devastating recent flood disasters.
