Nepal Government Announces 50% Customs Duty Exemption for Reconstruction
Customs Duty Exemption
22nd September 2025, Kathmandu
The Government of Nepal has announced a significant relief package to aid the nation’s recovery from the recent ‘Janajati movement’ which caused widespread damage.
Customs Duty Exemption
In a cabinet meeting on Sunday, a crucial decision was made to provide a 50% Customs Duty Exemption on imported reconstruction materials.
This move is intended to fast-track the rebuilding of industries, businesses, and economic activities that were severely affected. Finance Minister Rameshwor Khanal, while announcing the cabinet’s decisions, emphasized the government’s commitment to reviving the economy with immediate effect.
The decision is part of a broader strategy involving collaborative efforts from the government, Nepal Rastra Bank, and the Insurance Board to provide comprehensive relief programs to those impacted.
Financial Relief for Businesses
The government’s relief measures extend beyond customs duty exemptions. To provide immediate financial support, the Insurance Board has been directed to ensure that insurance companies make advance payments of 50% of the claims to affected parties.
This will provide much-needed liquidity to business owners and industrialists to start the rebuilding process without delay. This initiative addresses the immediate financial stress faced by thousands of affected people.
It helps them to get back on their feet as quickly as possible. This prompt action from the government is a positive signal to the private sector. It shows the government’s commitment to supporting economic revival.
Loan Repayment Extensions and Job Security
In a major relief for entrepreneurs and businesses, Nepal Rastra Bank has been tasked with facilitating the extension of loan repayment periods.
This measure provides a lifeline for those struggling to meet their financial obligations due to the disruption. It offers a much-needed grace period for recovery and stabilization before loan repayments resume.
Furthermore, to protect the livelihoods of employees, the government has introduced a plan to ensure job security.
Minister Khanal stated that affected industries and businesses can manage employee salaries either through their own means or, for those who are unable, through the National Reconstruction Fund.
This measure ensures that employees do not lose their jobs due to circumstances beyond their control. It helps to maintain a stable workforce.
The National Reconstruction Fund
The government’s plan includes the establishment of a National Reconstruction Fund. This fund will be used to manage repayment for businesses that cannot pay their employees.
It will also be the primary source for financing the reconstruction of public and private property damaged during the movement.
The fund will receive contributions from various sources, including the government and potentially private entities as part of their corporate social responsibility initiatives. This centralized fund will ensure efficient and transparent management of resources for reconstruction efforts.
A Coordinated Approach to Recovery
This set of decisions represents a coordinated and multi-pronged approach to national recovery. By combining fiscal measures like the customs duty exemption with monetary and regulatory relief, the government aims to create a supportive environment for economic activities to rebound.
The measures announced by Finance Minister Khanal are aimed at both immediate relief and long-term stability.
The collaboration between different government bodies like the Ministry of Finance, Nepal Rastra Bank, and the Insurance Board is essential. This integrated strategy is critical for ensuring a swift and effective recovery for all sectors of the economy.
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