Carpet reaches 76 countries, exports decreased by 5.74 percent

From July to May of the last financial year, carpets worth 10.32 billion 46 lakh rupees were exported. The carpet industry says that instead of promoting exports, the government is discouraging them by cutting the services they are getting. 99 percent of the carpets produced are exported.

Through the budget of the current financial year, the government canceled the value added tax (VAT) exemption given on cutting, dyeing, washing and weaving of woolen yarn for carpets. The government also reduced the 50 percent tax exemption facility on the income received by exporting manufactured goods. The government, through the budget of the current financial year, removed the VAT exemption given on wool, the raw material required for making carpets.

The cost of carpet production has increased due to the removal of value added tax and income tax exemptions given as incentives to the carpet industry. Balram Gurung, General Secretary of Nepal Carpet Producers and Exporters Association, said that after the government cut off the services provided for export promotion, carpet exports automatically decreased. Through the budget of the current fiscal year, 13 percent VAT was imposed on wool, the raw material of carpets, and 13 percent VAT was imposed on washing, weaving and cutting, and we reached more than 100 places to remove it. But it was continued in the next year's budget as well," he said. "After the service facility is removed, costs will increase and production will decrease. After the decrease in production, the export will also decrease automatically. Cash subsidy of 5 per cent has been given to the carpet industry as a cash subsidy for exports. But the industrialist says that the subsidy has not been received since the financial year 079/80.

According to the data of the department, carpets produced in Nepal are mostly exported to America. According to the department, carpets worth 5.811 billion rupees were exported to America from July to the end of May of the current financial year. Carpets worth Rs 704.6 million have been exported to Germany, Rs 502.4 million to Britain and Rs 475.4 million to Italy. The department said that carpets worth Rs 392.2 million were exported to France, Rs 382.9 million to China and Rs 252.2 million to Belgium.

In the next financial year's budget, it is mentioned that the export of carpets, carpets, yarn, ready-made fabrics, cement and other items identified by the Nepal Trade Integrated Strategy and currently being exported in high quantities will be increased. Gandaki Economic Triangle Project has been proposed in the budget of the next financial year, keeping Bharatpur-Butwal-Pokhara-(Mugling) Bharatpur in three angles to conduct a model development campaign according to the concept of integrated development. under the

triangle project, Narayangadh-Butwal section will be developed as a center for construction materials and heavy industry, Mugling-Pokhara section as a center for agriculture and food processing industry, and Pokhara-Butwal section as a center for household goods and service-related industries including electrical appliances, shoes, clothes, carpets It is mentioned in the budget. While in the Pokhara-Butwal section, only a small amount of carpets will be made, said the general secretary of the association, Gurung.