Kathmandu— The Nepalese government announced a business recovery package on Thursday to support industries and businesses affected by the recent Bhotekoshi flood. The package includes customs duty waivers for replacement equipment, tax relief measures, loan restructuring options, and expedited insurance claim processes. These measures are designed to help businesses recover from the damage caused by the floods that occurred on August 26.

Customs Duty Waivers

Businesses affected by the Bhotekoshi flood will benefit from a full customs duty waiver for importing replacement equipment and machinery. This waiver applies to machines of the same type and up to the quantity destroyed in the floods. Additionally, owners of commercial vehicles damaged beyond repair can cancel their registration and re-import similar vehicles without paying customs duties.

Insurance Claim Acceleration

The government has directed the National Insurance Authority (NIA) to deploy surveyors through a simplified procedure to expedite flood-related insurance claims. Insured individuals and businesses will be eligible for advance payments of up to 50 percent of their claims based on preliminary assessment reports. Reinsurers are also required to provide insurers with advance payments of up to 50 percent.

Loan and Interest Relief

The Nepal Rastra Bank (NRB) has announced loan restructuring measures for flood-affected borrowers, including the extension of repayment periods. Banks will offer loans at a base rate plus a prescribed minimum premium to businesses seeking to replace damaged commercial vehicles or equipment. For one year, affected borrowers will be charged the lower of either the bank's base rate plus a 0.5 percentage-point premium or the existing premium added to the base rate.

Tax Relief Measures

The government has extended tax filing and payment deadlines for flood-affected businesses until November 11, and simplified procedures for claiming VAT on damaged assets. Businesses can deduct the value of completely destroyed assets as a lump-sum expense for tax purposes, while partially damaged depreciable assets will not be subject to limits on deductions for repair costs when calculating taxable income.

(With inputs from RN)

Originally published on abcnews.com.np.