Nepal introduced the ‘cash incentives’ scheme through the fiscal policy to improve the situation of export while the country is facing the huge trade deficit. The trade deficit is high and its continuously increasing. But this scheme that the government’s ‘cash incentives’ provision is almost failed. There are news that only two out of 34 industries have been successful to get the incentives.
The Government of Nepal (GoN)’s effort to promote exports by providing the cash incentives is something good but the complication and bureaucratic hurdles that the businessmen and industrialists should face to get that cash is inexplicable— too much papers and documents are needed. industries that applied for the cash incentives at the Department of Industry (DoI) were asked to come up again with the proper documents.