Major tax overhaul announced in sweeping reform drive

english.makalukhabar.com · 13 hours ago

Finance Minister Swarnim Wagle announced a major restructuring of Nepal’s tax system through the budget for fiscal year 2083/84, introducing reforms to simplify taxation, reduce rates, and boost economic activity. Key changes include doubling the income tax exemption limit to Rs 10 lakh, reducing the maximum personal income tax rate by 10 percentage points, and consolidating fragmented taxes at customs points into a unified green tax system. The reforms also introduce a 10% VAT discount for digital purchases and an automated VAT refund system.