Income tax ceiling wider from Next fiscal year

Kathmandu, May 29

To the relief to mid-income people, the government has widened income tax ceiling.
Finance Minister Janardan Sharma informed with the new budget that an individual is to pay one percent tax up to half million income in a year while same tax rate is applicable to the married couple but the income ceiling up to Rs 600 thousand.

In light of the increasing economic activities in Nepal via electronic network from abroad, the government has made arrangement to bring such business under tax. For the same kind of businessperson in Nepal who conducts business abroad with software, electronic service, outsourcing, and IT-based activities, one percent income tax is imposed.

Meanwhile, the government projected the economic growth rate of eight percent in the coming fiscal year. (RSS)