‘Green Tax’ as a fresh revenue mechanism
▸ Part of: Nepal's Economy Faces Divergent Growth Forecasts Amidst Tax Disputes and DFI Investments
Nepal is set to implement an integrated "Green Tax" system from the fiscal year 2026/27, consolidating existing pollution control fees and infrastructure taxes. Despite collecting billions over years, these funds have not been utilized for their designated purposes, contributing to significant premature deaths from air pollution. The government's policy aims to streamline revenue collection, but clarity on the operational procedures and utilization of the integrated green tax remains uncertain.
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