Energy Bangla

Solar battery exporters face a stumbling block in the thriving Nepalese market as the Himalayan nation increased above 245 per cent import-level duties, prompting the country’s solar battery manufacturers to seek commerce ministry’s intervention.
The abrupt rise in the duties proposed in the national budget of Nepal for the financial year 2016-17 would hamper the prospects of battery exports from Bangladesh to the rapidly flourishing market in Nepal, said Bangladesh battery manufacturers’ association.
The business body– Bangladesh accumulator and battery manufacturers’ association– that represents 20 battery manufacturing companies of the country in a letter to ministry of commerce last week sought the government’s involvement towards persuading the Nepalese authorities.
The association president Munawar Misbah Moin in the letter said, ‘We are looking forward to your kind intervention and request to negotiate with the counterpart for sustaining the existing duty structure of solar battery.’
Currently, solar battery is subject to 11 per cent import-level duties in Nepalese market, including a 10 per cent import duty, while the new budget slapped a staggering 38 per cent duties that comprises 15 per cent customs duty, 10 per cent excise duty , and 13 per cent value added tax.
‘The spike in duty would weigh on our export potential, and stunt the growth badly in Nepal,’ Shahidul
Islam, secretary, Bangladesh accumulator and battery manufacturers’ association, told on Monday.
‘We urge the commerce ministry to take up the issue with the Nepalese counterpart to avoid tough competition from other competing regional countries.’
The data of Export Promotion Bureau shows that Nepal has been a lucrative market for Made in Bangladesh solar battery, as the export reached to Tk 32.95 crore in 11 months of current 2015-16 fiscal year, compared with Tk
20.94 crore fetched in 2011-12.
The future remains even brighter for Bangladeshi solar battery as the Nepalese government has recently made installing solar power system mandatory at all buildings in Kathmandu, Shahidul said.
Bangladesh exports accumulator battery, including automatic, solar and other industrial ones to the tune of above US$ 10 million per annum to around 57 countries in the globe. The ministry of commerce brackets the item as non-traditional export item, having enormous prospects to grab considerable share in the global perspective in future.
Talked, a senior commerce ministry official said they would soon write to the Nepalese commerce and industries ministry to lower the proposed duty on solar battery.
‘The abnormal hike in the duties is arbitrary,’ the trade official in the commerce ministry said.