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.

Concession of Tax, Interest and Fees

Section 21 (of Finance Act):

If any Individual (Natural Person) who has not filed The Return of Income Tax during or before F.Y. 2072/73, Files the return of F.Y. 2071/72 and F.Y. 2072/73 and pays tax therein, within Paush end, 2075, The Income tax and Fees and charges before such period shall be waived.

If any person who has not filed the Return of VAT upto Ashad end, 2074, files such return and pays the tax dues therein within poush end, 2075, the Interest, fines and penalties in such tax shall be waived.

Finance Act, 2075

Infrastructure Tax (Section 9:

NPR 5/- shall be imposed on the import of Air Fuel, Petrol and Diesel at the customs Point.

Road Construction Fees (Section 10):

This fees is charged on the registration of any vehicle within Nepal.

Road Repairs and Maintenance (Section 11):

Per Liter NPR 4 on Import of Petrol and NPR 2 on the Import of Diesel shall be collected at customs point.

Cinema Development Fees (Section 12):

Cinema Development Fees shall be charged as per schedule - 4 on the ticket sales.

Pollution Control Fees (Section 13):

NPR 0.50 per liter of petrol and diesel. It should be collected by the importer and is to be deposited by within 25 days of the next month. If not deposited, 15% interest is charged.

Telephone Ownership Charge (Section 14):

• New Line NPR 1000/-. It is also charged when transfer of the line.
• 2% of the sales value is charged from Prepaid sim cards.
• It is to be collected by the telecom service provider and shall be deposited into revenue account of the government within 25 days of the next month. If not deposited within the deadline, Interest @ 15% shall be charged.

Telecom Service Fees (Section 15):

Telecom Service fees is charged @ 13% from customers on sale of Telephone, Mobile or Internet services by the service provider.

Payment of such fees shall be made within 25 days. If not deposited within deadline, 5% additional charge shall be charged.

Casino Royalty (Section 16):

Casinos shall pay annual NPR 4 Crore. If games are played through machines / equipment NPR 1 Crore shall be charged.

One License shall be valid only for one place.

Payment of Royalty shall be made within 2 months from the start of Financial Year (Shall be paid within Bhadra End). Payment has to be made to Ministry of Culture, Tourism and Civil Aviation.

If payment is not made within the time limit, interest shall be charged @15% of such fees. if delay is done for more than 3 months, 15% additional fees is charged.

Administration of Casino Royalty is done by the ministry of Culture, Tourism and Civil Aviation.