Nepal Government Grants Tax Exemptions for Second Phase of Kathmandu Ring Road Expansion by Chinese Firm
Summary
The Nepal government has granted tax exemptions to a Chinese firm for the second phase expansion of Kathmandu Ring Road, facilitating progress on the project with Chinese financial and technical support.
Key Points
- Nepal has granted all tax exemptions to the Chinese construction company for expanding the second section of Kathmandu Ring Road (Kalanki–Basundhara).
- The Ministry of Finance recently approved exemptions on customs and internal taxes related to construction materials, equipment, and salaries for the project.
- The expansion includes an 8.2 km stretch designed by Chinese state-owned companies, to be widened to eight lanes with overpasses, bridges, footbridges, and intersections.
- The Ministry of Physical Infrastructure and Transport will now present the implementation agreement to the Cabinet after Finance Ministry's consent, enabling construction to commence.
