KATHMANDU, Nov 14: The government collected more than Rs 14 billion in revenue from the exemptions and 'schemes' provided by the Finance Act in the last Fiscal Year (FY) 2023/24.
According to the Ministry of Finance, revenue amounting to Rs 14.16 billion was collected from the exemptions and schemes under the Finance Act 2080 BS. In the last FY, the government collected a total of Rs 944.55 billion in tax revenue and Rs 114.34 billion in non-tax revenue.
The government's target was Rs 1.422 trillion, but only 76 percent of the target was realized. The government often announces various schemes to collect revenue that has remained uncollected for a long time.
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The Ministry of Finance has stated that in the last fiscal year the government investigated various income years of 1,986 taxpayers, resulting in an additional determination of Rs 11.04 billion.
The government had canceled 170 and 340 exemption rates of Value Added Tax (VAT) with the goal of expanding the tax base by reviewing exemption and concession arrangements.
Nepali citizens, who went abroad for foreign employment with a labor approval and returned after working for at least six consecutive months, were allowed to bring one additional mobile phone, apart from one set they had used, under the duty exemption facility from May 15, 2023.
From the current fiscal year, Nepali workers who have contributed to the Social Security Fund, worked abroad for at least 12 consecutive months are allowed to bring any size of television set with exemption from customs duties. Similarly, customs duties on the import of certain goods have been increased to prioritize domestically produced industrial products. Domestic industries are allowed to sell cement, iron rods, iron and plastic pipes, galvanized sheets, and electrical cables with exemptions from VAT and excise duties.
Similarly, small, domestic, and micro-industries will pay only a 1 percent customs duty on machinery used for production purposes. Individuals with an annual income exceeding Rs 5 million will face a general increase in income tax, while those earning foreign currency by exporting information technology services will receive a 50 percent income tax exemption on such earnings.
Similarly, the government brought non-residents, who sell electrical services in Nepal under the tax net by allowing VAT filings until mid-June 2023. The fees, along with interest and other additional charges associated with the filing, were waived.
