Budget 2066-67

Major Changes by Finance Act 2066

1. Income Tax Ceiling increased to Rs. 160,000 for individual and Rs 200,000 for couple. 1% tax will be charged up to this limit. But for Proprietorship firm 1% will not be levied.

2. Capital Gain Tax Decreased from 15% to 10%.

3. Local Development Tax of 1.5% removed

4. Windfall Gain included on taxable income of a person

5. 80% duty on milk tanker has been exempted.

6. The agriculture reform fee has been reduced from 8 percent to 5 percent.

7. Health institutions liable to collect and pay health service tax may opt to collect and pay value added tax instead by voluntarily registering with the Value Added Tax.

8. Arrangement has been made to levy only 90 percent income tax on special industries and information technology industry which directly employ 300 or more Nepalese all the year round. Similarly, industries which directly employ 1200 or more Nepalese nationals all the year round or which provide direct employment to more than 100 Nepalese nationals including 33 percent women, dalits (the downtrodden) or the handicapped will have to pay only 80 percent tax on their income of that particular year.

9. Arrangement has been made not to look into the income source of manufacturing industries using more than 50 percent indigenous raw materials, employing more than 300 national workers or those of national importance such as hydro electricity projects, international airports, tunnel ways, road ways or railways until mid April, 2019.

10. In order to give further incentive to export trade, arrangement has been made for providing lump sum refund within 30 days to the person or organization exporting more than 40 percent of their monthly sale.

11. In order to reduce the cost of trade and industry as well as to simplify the process, except for brick industry, stone crusher and tobacco products (panparag, chewing tobacco gutka and khaini) the need to get excise license on the production, import, export, storage, sale and distribution of all other excisable items under self-release will be annulled.

12. Arrangement for excise duty exemption on items produced by using more than 90% domestic scraps has been made.

13. VDIS program not continued.

14. No need to pay advance tax if estimated annual tax is less than Rs. 5,000 earlier it was Rs. 2,000

15. Amendment in definition of Non Business Chargeable Asset: