In the Finance Bill

Kathmandu. The government has made arrangements for some concessions and relief for hydropower projects through the Finance Bill.

Bank guarantee facility will be provided to the project where the project agrees in principle to enhance the capacity of the hydropower project and change the design, its contractor or the promoter of the project will import equipment and other materials.

The government has made arrangements to provide bank guarantee facility for the amount of customs duty, excise duty and VAT levied while importing the parts, tools and essential materials for the production, transmission and distribution of the project, as well as the customs duty, excise duty and VAT levied while importing the steel plates. It is believed that this will facilitate the construction of hydropower projects.

Once the capacity enhancement and design change are approved, the project, contractor or promoter will have to submit an application to the customs office to release the bank guarantee with the recommendation of the Department of Electricity Development. In case such an application is received, the Customs Office should make necessary inquiry and recover one percent premium from the bank guarantee kept at the time of import and waive the remaining tax and release the bank guarantee.

Similarly, the amount contributed to the National Reconstruction Fund established by the government in the current fiscal year can be deducted while calculating taxable income for that income year.

The government has waived customs duty and excise duty equivalent to 50 percent on the import of such materials based on the details of the goods confirmed from the report of the insurance surveyor for the damage caused to the building, furniture, machinery and equipment by arson or vandalism in the industries, trade or business establishments affected during the Genji agitation.

Royalty and renewal fees have also been waived for the period when the casino business was not in operation during the Genji movement.