It has been almost one and a half year since the announcement was made to establish Special Economic Zones (SEZ) in Jhapa. However, the proposal, forwarded by the previous Maoist-led government, is yet to see the light of the day thanks to dillydallying and lack of coordination between concerned government authorities.

The then government had come up with the concept of SEZ in order to expand economic development at regional level.

The feasibility study vis-à-vis the establishment of SEZs in Jhapa and Kailiali has been accomplished. However, the lack of inter-ministerial coordination is stifling the establishment of SEZ.

The dissonance between the Commerce and Supply Ministry and Forest Ministry has hampered the timely completion of the project. During the course of the feasibility assessment, the former has recommended Kerkha area of Jhapa district as a viable place to construct SEZ.

However, the latter rejected this proposal as some 300 bighas of land,that fall under Ratuwamai Plantation Project, has to be acquired for establishing SEZ in Kerkha.

The proposed area is said to be apt for SEZ from the viewpoints of its proximity with the Mechi custom point and security. According to entrepreneurs, if the SEZ established in Kerkha, it will be easy to export Nepali goods to third countries as the Mechi custom is just 50 km east from the area.

It is provisioned that no organisation can stage any kind of protest and bandh in the SEZ.

Similarly, the industries established in the SEZ can enjoy tax holiday during the period of the first 5 years of their commencement.

Similarly, they are exempted from the provision of paying custom duty and Value Added Tax (VAT) forever.

However, such manufacturers have to pay a 50 percent income tax after five years as per the prevailing provision. Moreover, they will also be officially bound to export 85 percent of their products to third countries. nepalnews.com

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