Kathmandu. Finance Minister Bishnu Prasad Poudel has said that the mistake made by former Finance Minister Barshaman Pun has been corrected. Minister Poudel has abolished vat on digital payments and advance income tax on customs.
Former minister Pun had provided up to 10 per cent advance tax on customs duty. Similarly, VAT was also levied on digital payments. Addressing a press conference at the Ministry of Finance, Minister Poudel said that the tax policy brought by former minister Pun was changed after suggestions from many quarters that it was wrong. He said, “The policy of imposing advance income tax at the customs point is not good, the Commission has amended this provision and vat on digital payment has also been removed.” ”
Finance Minister Poudel has claimed that the budget has made a realistic estimate of income and expenditure. More than the limit given by the National Natural Resources and Finance Commission. Minister Poudel said rs 13 billion has proposed to reduce the internal debt. He said that only 5.3 percent of gdp has been proposed against the limit of 5.5 percent. Minister Poudel said that the improvement in the project management and procurement process will increase the capital expenditure.
The government has implemented the criteria of Rs 30 million for the federal project. Minister Poudel claimed that the budget would balance the current expenditure due to the policy of austerity and expenditure reduction. The budget has made arrangements to monitor the projects worth more than Rs 250 million from the National Dashboard. The subsidy has been capped at a maximum of 50 per cent of the cost.
Social security spending and health insurance have been made more systematic. Expansion of the scope of health risk tax has been made for tobacco, khaini, gutkha, pan masala, aromatic betel nut, mouth freshener and hookah flavor.
The luxury fee on the purchase of gold and gold ornaments has been removed from the earlier threshold of Rs 1 million. In order to encourage digital payments, value added tax has been abolished.
Excise duty has been levied on the basis of quantity on cement, while excise duty will be levied on the basis of price. Excise duty on premium cigarettes has been increased by 5 percent and on cheap cigarettes by 3 percent.
The provision of collecting advance tax at the customs point has been abolished. The government has abolished the provision of paying minimum tax even to taxpayers who have not transacted or have zero turnover.
Income from hotels, resorts and information technology industries will be taxed at par with special industries. The government has increased the transaction limit to Rs 100 million from the provision of income tax exemption up to five years given to startup businesses.
Industries producing and assembling electric-powered vehicle charging machines will get income tax exemption for five years from the date of commencement of business.
Retirement funds approved by the Department of Internal Revenue must be made employees’ provident fund; citizen investment fund; There is a provision to join the Social Security Fund or Retirement Fund.
Toward customs duty
The government has completely waived the duty on import of mill machinery equipment required for green hydrogen, natural and organic fertilizer industry. Similarly, only 1 per cent duty will be levied on import of goods required by timber seasoning industries, energy production, sports, electric charging machine manufacturing and assembling industries.
At present, the customs duty on expensive and cheap liquor, beer and wine is being levied at the same rate on the basis of quantity. A large number of taxpayers, who have not submitted their details for a long time, will be fined, additional fees and interest if they pay the details and taxes as an opportunity.
Those who do not submit the details of excise duty will be given a fine, additional fees and interest if they pay the details and taxes. The government has removed the provision of bank guarantee to be maintained by export importing industries while taking exim code.
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