KATHMANDU, Aug 21: Commercial banks of Nepal paid Rs 32.80 billion in income tax to the government in the fiscal year 2024/25, which was 23.56 percent more than the amount they paid in the previous fiscal year.
In FY 2023/24, commercial banks contributed Rs 26.54 billion to the state coffers under the same heading. According to bankers, the contribution of ‘A’ class financial institutions to the government tax revenue surged with increased profit earnings in the review period. The unaudited financial reports unveiled by the banks show that they made net profits of over Rs 71.18 billion last year, up by 43.38 percent.
As per the law, the banks need to pay 30 percent in income tax to the government. Out of the profits they earned, banks have to pay the tax from the amount after deduction of 10 percent of the net profit separated for employees’ bonus.
Last year, Kumari Bank paid the highest tax. The bank settled Rs 3.66 billion in tax, which was more than three folds compared to Rs 994.3 million in the previous FY.
Nabil Bank stood second in the list. The bank paid Rs 3.21 billion in tax, up by 34.14 percent in the review period.
Likewise, Nepal Investment Mega Bank paid income tax of Rs 2.85 billion, which was 83.43 percent more. The bank was able to improve its profit earning by a notable amount in the last FY.
Similarly, Global IME Bank paid Rs 2.57 billion and Everest Bank cleared Rs 2.53 billion in income tax to the government. Out of the 20 commercial banks, NIC Asia Bank paid Rs 55.15 million, witnessing the largest fall of 77.51 percent in its tax contribution.
The income tax payment amount of Prabhu Bank and Citizens Bank International also declined to Rs 862.41 million and Rs 545.14 million, respectively.