KATHMANDU: Nepal’s finance minister, Ram Sharan Mahat, has offered a number of tax breaks in the 2014/15 budget, including a 50 percent value-added tax rebate for the tea industry.
Manufacturing companies investing at least NPR1bn (USD10m) in capital goods and companies investing over NPR2bn in the tourism or aviation sector will be granted an income tax exemption for five years, and a 50 percent discount for a further three years.
The Budget also announced that a high level tax system review commission will be formed, and outlined plans to modernize tax administration.
Despite numerous tax breaks, the government expects to achieve its targeted revenue collection for the current Fiscal Year of NPR354.5bn.
