Kathmandu. The government has changed the existing provision regarding tax rates on various goods through the Finance Bill 2082 BS. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel, while presenting the budget statement in the joint sitting of both houses of the federal parliament on Thursday, said that the provisions related to the rate of revenue under different heads have been amended.
According to the new provision of the budget, it-based industries and hotels and resorts have got income tax and electricity tariff exemption on the lines of special industries. A 75 percent tax exemption has been given on the income earned from the export of information technology services.
The government has also made a provision that only five percent income tax will be levied on the income of people who export information technology services abroad while staying in Nepal. The government has decided not to charge income tax for five years to start-ups with annual turnover up to Rs 100 million.
Similarly, customs duty on import of mill machinery and equipment for organic and natural fertilizer production has been removed and all other types of taxes and duties levied on it have been abolished.
Only one percent duty has been imposed on the import of machinery, equipment and sports equipment required for the construction of football, cricket and multi-purpose stadium infrastructure, while all types of tax exemption has been given on the import of machinery equipment for the green hydrogen producing industry. The budget also provides for income tax exemption for green hydrogen producers for five years.
There will be no tax other than one percent customs duty on import of equipment required for the production and assembling industry of electric vehicle charging machines. Also, such industries have been exempted from income tax for five years. Value Added Tax (VAT) on digital payments has been abolished. Similarly, advance income tax on vegetable, animal products and milk products, including food grains, legumes and fruits, has been abolished.
The value-added tax (VAT) levied on hearing aids required for hearing impaired persons has also been abolished. The price limit of Rs 1.6 million has been removed in ambulances carrying patients who can be imported under revenue exemption facility.
The government has introduced a provision to give the remaining income tax exemption to public and private vehicles older than 20 years or those who do not come into operation for the purpose of deducting their income tax for the last two years. Customs duty on import of liquor, beer, tobacco and cigarettes has been increased and the existing excise duty rate has also been increased.
The scope of health risk tax has been expanded. Fresh, fried or frozen meat of domestic birds (poultry) has been subjected to 15 per cent excise duty, while the excise duty on dog or cat food kept for retail sale has been increased from 10 per cent to 20 per cent. Similarly, 10 percent excise duty has been imposed in Amriso. Excise duty on tobacco products has been increased. The excise duty on unfiltered cigarettes and cigars has been increased from Rs 755 per m to Rs 778.
The excise duty on cigarettes up to 70 mm in length has been increased from Rs 1,740 to Rs 1,792. Similarly, cigarettes of more than 70 and less than 75 mm in length have been increased from Rs 2,370 to Rs 2,441 per mm. The excise duty on boards of various thicknesses made by mixing wood dust, cement and various binding chemicals has been increased from 5 percent to 10 percent.
Similarly, excise duty on pre-fabricated structural components for construction or civil engineering has also been increased from 5 per cent to 10 per cent. Excise duty on carpets and brake lighting pads has been increased from 5 per cent to 10 per cent.
The customs duty on import of dried grapes (raisins) from 7.25 per cent for SAARC countries and 15 per cent for other countries has been reduced to 6 per cent for SAARC countries and 10 per cent for other countries.
The customs duty on import of beetroot sugar from SAARC countries has been fixed at 6 per cent and 30 per cent on import from other countries. Similarly, the customs duty on sugar, sugarcane sugar and mishri has been reduced from 30 per cent to 15 per cent.
The customs duty on fruit problems has been increased from 10 per cent to 15 per cent. Similarly, the customs duty on soup, broth and other items has been increased from 20 per cent to 30 per cent. The customs duty on tobacco-free aromatic betel nut has been revised to 40 per cent from Rs 100 per kg.
Similarly, the customs duty on energy drinks has been fixed at the rate of Rs 100 per liter, but now it has been made 40 percent. Customs duty on light drinks and smelly milk products has also been fixed at 40 per cent. Earlier, the customs duty on beverages and alcohol products was fixed at a fixed amount per liter, which has been amended. The customs duty on import of beer made from barley has been revised to 80 per cent from Rs 200 per litre. According to the bill, the customs duty on fresh grape wine and alcohol-secured fortified wine and sparking wine was Rs 300 per litre.
Customs duty on country wear, sempagne, seri, mid, peri and cider has been increased from 40 percent to 80 percent. Similarly, underwater ethyl alcohol with 80 per cent density of alcohol and denatured ethyl alcohol with any alcohol and other spirits will now be charged Rs 60 per litre. Earlier, the customs duty on the import of brandy was Rs 1,50,000 per liter, which has now been fixed at 80 percent.
Similarly, the Finance Bill has been brought to impose 100 percent customs duty on various other types of alcohol products. The customs duty on cigars and cigarettes has been increased from Rs 9,000 to Rs 11,000 per 1,000. The customs duty on cigarettes and cigars of different lengths with ready-made bidis and filters has been increased from Rs 4,500 to Rs 5,500 per thousand. Customs duty on processed tobacco for cigarettes and bidis has been increased from 30 per cent to 60 per cent. The customs duty on ecogene or other lime mixed monuments or buildings has been reduced to 20 per cent from 30 per cent.
Similarly, wall covering made of cloth has been increased to 20 percent from 15 percent earlier on import of paper or plastic wallpaper pasted on the walls carved with various butts from other than SAARC countries. Customs duty on trimming caps has been increased from 15 percent to 20 percent. It has been reduced from 20 per cent to 15 per cent on import of wood dust, cement and various winding chemicals.
Import of cement concrete or artificial stone items has been reduced from 7.25 percent to 6 percent for SAARC countries and from 15 percent to 10 percent for non-SAARC countries. Various construction equipment such as pile driver, pile extractor, boring and other equipment have been subjected to 5 per cent customs duty, which has been reduced to one per cent. Special provisions have been made regarding exemption and concessional excise duty penalty and late fee waiver.
According to the bill, 50 per cent of the excise duty and late fees to be paid by mid-March 2081 will be waived off by mid-December. Similarly, the government has taken a policy to waive interest, penalty and additional fees levied on international air transport service providers and air ticket sellers who are yet to be registered in the Value Added Tax and pay the vat from October 1, 2080 BS.
The provision of exemption has also been introduced through the Finance Bill for taxpayers who have not submitted their income details. If the income statement of any previous financial year has not been submitted, then income tax can be paid by submitting such details till mid-December.
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