March 30: The government has announced relief package to tackle the financial crisis created by coronavirus. A meeting of the Council of Ministers on Sunday (March 29) decided to provide relief to the people and sectors affected by the pandemic.

The government has directed telecommunication service providers to provide 25 percent discount to their customers on internet and voice pack services during the lockdown period, informed Finance Minister Yuba Raj Khatiwada, who is also the government spokesperson.

The government also announced that the local units would ensure the poor families would be distributed food supplies during this critical situation. But the local units have been instructed to verify that the people receiving support from the government are actually from poor families.

Finance Minister Khatiwada said that all industries and firms must pay the employees even if they are closed due to the lockdown.

“The workers employed in the formal sector must be paid their daily wage or monthly salary by the employers,” said Khatiwada.

According to the cabinet decision, hotels and restaurants that have been closed due to the impact of coronavirus will also have to pay their workers full salary up to mid-April. Minister Khatiwada clarified that the employers can utilize the welfare fund to pay the workers as per the need during such time of crisis.

The cabinet meeting has made it clear that the formal sector cannot give unpaid leave to the employees during the lockdown period while those working in the informal sector on daily wage basis will be provided food and support.

The daily wage labourers will receive food from the local units, according to minister Khatiwada.

The government has also announced discount on electricity tariff. As per the government decision, consumers will get 25 percent discount on electricity bills for the months of Falgun and Chaitra (mid-February to mid-March) for consumption of less than 150 units of electricity.

Likewise, the government will make food stuffs available to the general public through Nepal Food Corporation and the Salt Trading Corporation at 10 percent discount rate.

The government has also barred private schools from taking one month’s fees while the landlords have been instructed to waive the rent of a month due to the current crisis.

Likewise, the government has banned the import of vehicles more than US$ 50,000 while it has also limited the import quota of gold considering the fragile economy.  Until now, the government used to allow the import of 20 kg gold per day, which has now been reduced to 10 kg per day.

Another decision of the government is to extend the deadline for the payment of income tax and value added tax.

Former Finance Secretary Shanta Raj Subedi says that the relief package announced by the government is a positive step to support people with low income and those working in the private sector.

“It is essential to strongly monitor whether the government’s relief package is implemented or not,” he added.

Economist Bishwambher Pyakurel said that the relief package announced by the government at a time of crisis is helpful to some extent. He, however, said that the government should have collected proper details of the sectors affected by coronavirus and the effects it might have in the future.

“Such short-term package announced by the government without proper study will cause financial strain to the state coffers,” he said. “The government should have announced the relief package by studying the impact for at least six months,” he added.

The cabinet meeting has also decided to insure health workers and provide them compensation in case of fatality.

“Those companies which have been contributing to the social security fund will receive one month’s salary of the workers from the government’s side,” said minister Khatiwada.

The government has also decided to accept international support and seek funds from donor agencies in its fight against the crisis created by coronavirus.

In this regard, the government has accepted the World Bank’s offer of concessional loan of Rs 3.48 billion.