Government Announces Tax Relief and Facilities for Businesses Affected during Gen Z Protests

The government has announced a package of tax relief and financial facilities for industries and commercial establishments damaged during the recent Gen Z protests.

According to a press release issued by the Ministry of Finance on Wednesday, affected industries, businesses, and commercial establishments will receive a 50 percent waiver on customs duty and excise tax when importing goods necessary for restoration and operation.

For five-star hotels that suffered losses, only 5 percent customs duty will be levied on imports required for reinstating and operating damaged property, based on insurance surveyor reports.

Insurance companies have been directed to provide up to 50 percent of the insured amount as an advance payment to affected businesses. For such claims, surveyors must be deployed immediately to verify the extent of damage.

Similarly, the Ministry of Finance has instructed Nepal Rastra Bank to extend the repayment period for principal and interest on loans owed by industries, traders, and commercial enterprises directly affected by the protests. Banks and financial institutions will provide concessional loans with a premium of no more than 0.5 percent above the base rate to help restart operations.

The Gen Z protests which began on September 8 turned violent the following day after 19 people were killed in police action, resulting in widespread vandalism and arson at government structures and commercial buildings. The Federation of Nepal Chambers of Commerce and Industries (FNCCI) estimates private sector losses worth Rs 80 billion due to the unrest.