The government has been stepping up efforts to introduce an Industrial Enterprise Act (IEA) which has for the first time included micro-enterprises among the types of enterprises and contains provisions to promote them.
The private sector has been demanding such a law for a long time.
The Ministry of Industry is planning to present the draft IEA to the Cabinet next week which will be the government’s third attempt to create such a law.
Efforts have been made twice in the past to bring the act, the first time when Parliament existed and the second time after the first Constituent Assembly was dissolved.
Although a new industrial policy was introduced in 2010, it has not been implemented due to lack of an act. The policy has classified industries into nine categories and micro-enterprise is one of them.
Industry Ministry Spoke-sperson Yam Kumari Khatiwada said that micro-enterprises were recognized as they play an important role in poverty alleviation in rural areas.
“The proposed bill has clearly defined micro-enterprises and includes measures to promote them,” she said.
According to the ministry, it has also revised the threshold of capital investment for small, medium and micro-enterprises.
“The minimum capital base for being identified as a small industry has been set at Rs 50 million, up from Rs 30 million,” said a source at the ministry.
The new act will also contain several provisions related to tax incentives for businessmen. The act is an umbrella act of the business sector, and the private sector has long been demanding its early enactment.
Khatiwada said that the bill was prepared following several rounds of consultations with stakeholders and studies. “It has incorporated the spirit of all the sectors although it may not be perfect,” she said. “If new issues arise even now, we can always incorporate them.
Source
The private sector has been demanding such a law for a long time.
The Ministry of Industry is planning to present the draft IEA to the Cabinet next week which will be the government’s third attempt to create such a law.
Efforts have been made twice in the past to bring the act, the first time when Parliament existed and the second time after the first Constituent Assembly was dissolved.
Although a new industrial policy was introduced in 2010, it has not been implemented due to lack of an act. The policy has classified industries into nine categories and micro-enterprise is one of them.
Industry Ministry Spoke-sperson Yam Kumari Khatiwada said that micro-enterprises were recognized as they play an important role in poverty alleviation in rural areas.
“The proposed bill has clearly defined micro-enterprises and includes measures to promote them,” she said.
According to the ministry, it has also revised the threshold of capital investment for small, medium and micro-enterprises.
“The minimum capital base for being identified as a small industry has been set at Rs 50 million, up from Rs 30 million,” said a source at the ministry.
The new act will also contain several provisions related to tax incentives for businessmen. The act is an umbrella act of the business sector, and the private sector has long been demanding its early enactment.
Khatiwada said that the bill was prepared following several rounds of consultations with stakeholders and studies. “It has incorporated the spirit of all the sectors although it may not be perfect,” she said. “If new issues arise even now, we can always incorporate them.
Source
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