- The government announced changes in tax rates for various goods and commodities in the upcoming fiscal year’s budget.
- Finance Minister Barshaman Pun reduced import fees and excise duty on raw materials for drugs, induction stoves, yarn, helmets, incense sticks, sanitary pads, and other goods to support domestic industries.
- VAT exemption for some goods has been removed to expand the tax base.
- VAT on potato, onion, apple, and other vegetables and fruits has also been annulled to promote domestic production.
- Excise duty on liquor, beer, tobacco, and cigarettes has been increased.
- The threshold for VAT registration for mixed transactions has been raised to Rs 3 million. Green tax has been imposed on the import of petroleum products and coal.
- Import tax and excise duty on some readymade goods have been increased to protect domestic industries.
- Customs duty on steel milk cans for animal keeping farms and industries producing over 1,000 liters of milk daily has been reduced from 15% to 1%.
Source Nepal news
