Kathmandu: The government has introduced various reform plans and programmes in the revenue sector through the budget speech for the upcoming fiscal year 2083-84 BS (2026-27).<\/p>\n\n\n\n
Presenting the government’s estimations of income and expenditures for the upcoming fiscal year before the Federal Parliament on Friday, Finance Minister Dr Swarnim Wagle announced comprehensive policy transformations, centring on the tax system, revenue transformations, customs reforms, investment encouragement and expansion of the digital economy.<\/p>\n\n\n\n
The budget, presented with an aim of expanding economic affairs through enterprise-friendly tax policy, simpler and clearer tax laws, voluntary tax participation and technology-friendly tax administration, is expected to cause significant reforms in the revenue system.<\/p>\n\n\n\n
During the budget speech, the Finance Minister said the government has pursued a policy of expanding a formal economy by connecting all economic activities to a digital system.<\/p>\n\n\n\n
As per the announcement, the revenue collection will be increased through the promotion of voluntary tax participation by developing an automated, IT-friendly, and motivated tax administration. It has introduced a policy of mobilising non-tax revenue on the basis of cost reimbursement and the ability to pay.<\/p>\n\n\n\n
The government has announced to establish the IT sector as the nation’s’ new economic engine’, deciding to give a 50-per cent tax discount on income generated from the experts of IT-related services.<\/p>\n\n\n\n
Similarly, the budget statement has introduced a provision to grant a 100 per cent tax exemption on the \u201csweat equity\u201d income received by human resources working in the information technology sector while calculating taxable income. This announcement has been considered as an effort to attract startups, innovation, and technology-based enterprises.<\/p>\n\n\n\n
For the promotion of domestic production, it has been announced to implement the ‘domestic product promotion fee’ on some goods produced within the country.<\/p>\n\n\n\n
Likewise, income tax has been exempted in the interests generated from loan investment in Nepal by non-profitable development finance organisations on the full ownership of neighbouring nations.<\/p>\n\n\n\n
The government has announced a review of the sensitive list under the South Asian Free Trade Area ( SAFTA), indicating a change in the government’s trade policy.<\/p>\n\n\n\n
An equity fee on a minimum rate will be implemented in the private education and health services, encouraging infrastructure development and service expansion in rural areas.<\/p>\n\n\n\n
In the energy sector, a provision has been introduced to implement Value Added Tax (VAT) at a concessional rate on electricity consumption exceeding 50 units per month sold to end consumers.<\/p>\n\n\n\n
The customs duty currently levied on electric vehicles based on ‘peak power’ capacity will now be determined on a value basis. In addition, a ‘clean infrastructure investment fee’ will be levied for the domestic production of electric vehicles, construction of charging stations and battery management.<\/p>\n\n\n\n
To promote the export of Nepali brand alcohol, ‘good spirit’ production and ‘maturation’ process will be encouraged in the liquor industry. Microbreweries will be registered as liquor industries and brought under the scope of excise duty from the coming fiscal year.<\/p>\n\n\n\n
Tax on tobacco products has been increased by about 10 percent while excise duty has been increased on alcohol and beer.<\/p>\n\n\n\n
The government has announced major structural changes towards revenue administration reform. It is stated that the Revenue Investigation Department will be scrapped. All businesses with an annual turnover of more than Rs 100 million and issuing e-invoices will be linked to the Central Invoice Monitoring System. Small business owners will be encouraged to receive payments through digital means.<\/p>\n\n\n\n
Announcing the creation of a ‘paperless, faceless and contactless’ revenue administration, Finance Minister Dr Wagle said that services including tax return submission, payment, and withdrawal will be fully automated.<\/p>\n\n\n\n
In order to control the multi-tax system seen at the local level, the budget has made provision to eliminate multiple taxes, including export duties and customs duties, imposed by various local levels while transporting goods from one place to another. Permanent Account Number (PAN) will be made mandatory when paying taxes at the provincial and local levels.<\/p>\n\n\n\n
The government is to introduce the concept of ‘Authorised Business Person’ for trade facilitation. Under this, qualified businesspersons will get fast clearance facilities through the ‘Blue Lane’ at customs.<\/p>\n\n\n\n
Towards tourism facilitation, the budget has made provision to allow tourists entering Nepal by land to declare temporary entry of vehicles and pay fees online from all main customs offices. It is stated that the deposit system for goods brought for wedding purposes will be automated to promote matrimonial tourism, and it will be easy for tourists to bring foreign currency within the limits prescribed by law.<\/p>\n\n\n\n
The agro-processing industry will be given full income tax exemption for the first 10 years, while value-added tax exemption will be provided on the import of \u2018cold storage\u2019, \u2018packaging and testing lab machinery\u2019, and equipment. RSS<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu: The government has introduced various reform plans and programmes in the revenue sector through the budget speech for the upcoming fiscal year 2083-84 BS (2026-27). Presenting the government’s estimations of income and expenditures for the upcoming fiscal year before the Federal Parliament on Friday, Finance Minister Dr Swarnim Wagle announced comprehensive policy transformations, centring …<\/p>\n","protected":false},"author":23,"featured_media":430563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,806,3,4,5,2],"tags":[],"reporter":[],"class_list":["post-430581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en-cover","category-economy","category-english","category-en-news","category-top-stories","category-top-stories-main"],"acf":[],"_links":{"self":[{"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/posts\/430581"}],"collection":[{"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/comments?post=430581"}],"version-history":[{"count":1,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/posts\/430581\/revisions"}],"predecessor-version":[{"id":430582,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/posts\/430581\/revisions\/430582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/media\/430563"}],"wp:attachment":[{"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/media?parent=430581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/categories?post=430581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/tags?post=430581"},{"taxonomy":"reporter","embeddable":true,"href":"https:\/\/radionepalonline.com\/en\/wp-json\/wp\/v2\/reporter?post=430581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}