Nepal Budget 2081/82 (2024/25)
✓ Nepal Budget 2081/82 (2024/25) is NPR 1,860.3 billion, which includes NPR 352.35 billion for capital expenditure, NPR 1,140.66 billion for recurrent expenditure, and NPR 367.28 billion for financial management.
✓ The total Budget is NPR 1,860.3 billion, which is a 6.2% increase from the previous fiscal year. Around USD 13.76 billion (based on a conversion rate of NPR 134.81 per USD, as per the National Policy Forum.
BUDGET OBJECTIVES
✓ The main objective of the budget is to upgrade the morale of the private sector, attracting high investment, with intensifying economic activities.
✓ Proper mobilization of means and resources, reducing poverty & economic ineqality in a balanced and equitable manner.
✓ High improvement on different sector to enhance employment, production, and productivity.
✓ To develop skilled and efficent human resources
✓ Generate the public service delivery very efficent & effective.
PRIORITIES OF BUDGET 2081/82
✓ Private sector advancement and economic rehabilation
✓ Progress on information technology, tourism, industrial development, agriculture, energy, and infrastructure construction
✓ Growth on social sectors, including health & education
✓ Social security and soundness
✓ Enhancement in public service delivery and Stimulation of good governance
BUDGET SUMMARY
Allocation of Budget:
| Current Expenditure | 1140.66 billion |
| Capital Expenditure | 352.35 billion |
| Financial Management | 367.28 billion |
| Total Budget Allocated | 1860.30 billion |
sources of Revenue:
| Tax Revenue | 1260.30 billion | 67.75% |
| Foreign Grant | 52.33 billion | 2.81% |
| Internal & Foreign Debt | 547.67 billion | 29.44% |
Total Expenditure:
| Revenue Expenditure | 61.32% |
| Capital Expenditure | 18.94% |
| Financial Management | 19.74% |
TAXATION GENERAL
Health Risk Task:
| Bidi | 30 paisa per stick |
| cigarette & Cigar | 60 paisa per stick |
| Khaini, Surti, Pan Masala, Ghuthka | 60 Rupees per KG |
Green Tax:
| Coal, Goods Manufactured from Coal etc. | 0.5/KG |
| Coke and Other Product etc. | 0.5/KG |
| Petrol, Diesel etc. | Rs. 1/ltr |
| Lubricating Oil, Petroleum oils and Minerals oil etc. | 1 percent |
| Others Oil etc. | 0.5 percent |
Other taxes:
| While exchanging foreign currency by the students going abroad for studies. | 3% |
| Import of Petrol and Diesel at customs point | NPR 10 Per Liter |
| General Casino | 50 Million Per annum |
| Casino using Modern Machine Equipment | 15 Million Per annum |
Note: A person or organization who have licensed to run a casino, must pay the
40% of the amount of royalty within Poush End, 70% of the amount of
royalty within Chaitra End, and 100% of the amount of royalty amount
within Ashad End.
TAX AMNESTY SCHEME
1. VAT Amnesty for International Airlines
Who: International airlines (registered or not)
Condition: Did not collect or submit VAT from May 15, 2023, to September 15, 2023.
Relief: No VAT, penalties, additional fees, or interest.
2. VAT Amnesty for Offline Airlines
Who: International airlines (registered or not)
Condition: Did not collect VAT from May 15, 2019, to May 14, 2021.
Relief: No interest, penalties, or additional fees.
3. VAT Amnesty for Transport Businesses
Who: Businesses providing transport services
Condition: Did not collect or submit VAT from May 15, 2023, to September 15, 2023.
Relief: Waiver of remaining taxes, fines, and interest.
4. VAT Amnesty for Onion, Potato, and Apple Producers
Who: Individuals selling onions, potatoes, and apples produced in Nepal
Condition: Must not have collected VAT or owe VAT as per tax office assessments until May 14, 2024.
Relief: No VAT, interest, penalties, or additional fees.
5. VAT Amnesty for Credit Information Service Providers
Who: Institutions providing credit information services to banks and financial institutions
Condition: If not registered for VAT, must register by the end of July 2024 and pay 50% of VAT due by the end of September 2024.
Relief: Waiver of remaining VAT, penalties, interest, and additional fees.
INCOME TAX
Changes in Income Tax
Capital Introduction: New shareholders can invest in a company for expansion without changing control for tax purposes.
Transfer Pricing Guidelines: The Inland Revenue Department (IRD) will develop guidelines for transfer pricing.
Permanent Establishment: The definition has been expanded to include more scenarios.
Dividend Tax: No tax on bonus shares for IT industries when profits are capitalized.
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Remuneration Limits: Payments over NPR 25,000 not made through banks will not be tax-deductible.
Commercial Funds: Funds for business transactions cannot be deposited in personal accounts.
Tax Rates: No variation in tax rates for individuals and corporations.
Income Tax Slab Rates for FY 2081/82:
| Flat Rate | 25% for normal income
|
| Certain services (shipping, air transport) | 5% |
| Special transport services through Nepal | 2% |
| Repatriation by foreign entities. | 5% |
Individual Tax Rates:
| For Individuals: | |
| Up to NPR 500,000: | 1% |
| Next NPR 200,000: | 10% |
| Next NPR 300,000: | 20% |
| Next NPR 1,000,000: | 30% |
| Next NPR 3,000,000: | 36% |
| Above NPR 5,000,000: | 39% |
| For Couples: | Similar structure with higher initial exemption (up to NPR 600,000). |
Corporate Tax Rates:
| Normal Rate | 25% for most entities |
| Financial Institutions | 30% |
| Special Industries | Various exemptions and reduced rates for specific sectors |
Withholding Taxes:
| Interest Income | 6% for certain payments |
| Dividends | 5% for both residents and non-residents |
| Consultancy Fees | 1.5% to 15% depending on the invoice type |
VALUE ADDED TAX
VAT Rate: Unchanged (13%)
VAT Registration Thresholds: Non-resident persons (Increased from NPR 2 million to NPR 3 million) & Deregistration (NPR 5 million for goods & NPR 3 million for services and mixed goods/services)
Tax Return Submission: Taxpayer failing to submit a return within four months may have imports/exports halted.
Exemptions Added: Basic agricultural products (e.g., fresh potatoes, onions, apples) are now exempt from VAT.
VAT Applicability Changes: Some goods (e.g., certain fruits, wood products) previously exempt are now subject to VAT. Public transportation services and specific machinery services are now exempt from VAT.
Zero Rates Good: Scooters for people with disabilities will have VAT refunded upon registration if criteria are met.
