Nepal Budget 2077/78

OBJECTIVES Of the budget 2077/78:

• To make ease and secure the daily life of citizens and protect their life from any pandemic or disaster.
• To maximum utilize the available resources and recover and continue economic development.
• To enhance role of state, by ensuring the public rights of essential supplies.
• To make developed, sovereign and socialism economic development by social, economic and infrastructural development.    

FACILITIES Provided by the budget 2077/78:

Relief to Small Businesses:

- 75% Concession on Income Tax, if Annual Turnover is less than NRs. 2 million (Rs. 20 Lakh).

- 50% Concession on Income Tax, if Annual Turnover is in between Nrs. 2 million to 5 million (50 lakh).

- 25% Concession on Income Tax, if Annual Turnover is in between Nrs. 5 million to 10 million (1 Crore).

Tax Exemption to Micro Enterprises:

(What is micro enterprises? Ans: enterprise which require fixed capital upto Rs. 20 lakh (except land / buildings). Such enterprise is self-managed by the entrepreneur (owner). It has maximum of NINE workers (including owner). It has annual turnover less than Rs. 100 lakh (one crore). It has energy consumption less than 20 Kw.)

Concession to Micro Enterprises: 

- It has benefit of 100% tax exemption for  5   7 Years (amended). If it is run by female, then such exemption will be for 10 years.

Reduction in custom rate 

- on machine and raw materials used for micro, small and cottage industry, agriculture, animal farm, veterinary, and mask producing industry.

Income Tax concession to Flight services, travel service, hotel, travel and trekking businesses, 

- provided 20% concession on Income Tax for Financial Year 2076/77.

Co-Operatives: 100% exemption to the Co-operatives operated in Rural - Municipalities.  The tax rates for others are:

Operated in Municipality: 5%

Operated in Sub-Metro: 7%

Operated in Metro: 10%

 VAT

Transporters, Tourism businesses and Cinema House 

- shall have to file VAT returns, every four months.

SSF: The funds operated by various approved retirement funds, if transferred into SSF, then Income Tax shall be exempt on retirement payments from such funds.

- Increase in Customs rates for Cigarette, Cigar, Paan, Guthkha
- To make self-reliant on milk, vegetable, and meat, programmes shall be implemented
- "Kisan Credit Card" will be implemented, to make farmers easy access to loan.