 |
Kathmandu Monday July 23, 2001 Shrawan 08, 2058.
|
Budgetary provision yet to be implemented
By Gopal Devkota
BIRGUNJ, July 22 - The budgetary provision to issue pass
books to exporters for the purpose of duty draw back from the customs points is yet to be
implemented albeit over two weeks have passed since the budget was presented.
Finance Minister Dr Ram Sharan Mahat in his budget speech for
the current fiscal year had announced to issue pass books to exporters for the purpose of
easy settlement of the duty paid by exporters at the time of importing raw materials for
export purposes.
Such duty debited (entered as paid) in the pass book during
imports would be credited (entered as given) at the time of export of the finished
products. The provision was introduced to improve the operation modality of the existing
duty refund system under a one-window policy. However, the pass books facility would be
availed only by those who draw a Letter of Credit for carrying out foreign trade.
"The pass books are yet to arrive," said Dikardev
Bhatta, official at the Birgunj customs office. He informed that the customs office so far
has been releasing imported raw materials only after exporters submitted deposits
equivalent in value to the duty accrued.
He also said, "Since raw materials from third countries
are yet to arrive, goods can be released by accepting collateral. Once raw materials from
third countries begin flowing in, there could be problems."
"The pass books are expected to arrive within a
week," he said.
So far the Birgunj Customs Office has arranged to release
goods on the basis of the deposits by exporters, which would be returned once the pass
books arrive. The accrued duties would then be entered in the pass books, informed the
official.
Exporters in Birgunj are vexed over the government’s
laxity in implementing the budgetary provision. They said that the deposit system is very
costly since a lot of their capital is locked up.
"We had met the Finance Secretary and the Director
General of the Customs Department immediately after the budget announcement urging them to
implement the budgetary provisions from July 16. However, they are yet to fulfil their
responsibilities," said Satya Narayan Agrawal, president of the Birgunj Chambers of
Commerce and Industry (BCCI). "If implementation is not cared, then a lot of
announcements can be made in the name of promoting business."
Similarly, Birendra Kumar Shanghai, vice president of BCCI,
said that the government has mostly limited its budgetary announcements in words. "If
the budgetary provisions announced in the budget are not meant for implementation, then
what is the use of budget ?"
The pass book system was scheduled to be introduced from July
16. Exporters were assured that the system would reduce the hassles they had to face
previously. Exporters in the past needed to deposit bank guarantees for importing raw
materials meant for export purposes. However, the government two years back revoked the
bank guarantee system and introduced the system of paying duties in cash.
Though the budgetary provisions of the past two fiscal years
contained allowed duty to be refunded within sixty days of import of raw materials, the
government could not clear the debts due to the lack of funds.
Even as of today, the government is yet to settle the duties
paid by many exporters. Under pressure of the exporters for settling the duties paid
earlier, the government in the latest budget announced to settle the past due by issuing 5
per cent debentures having 5-years maturity period.
Other Stories
|
