Nepal’s working class is heavily taxed, but poorly served
Summary
Nepal imposes high personal income tax rates up to 39 percent, yet struggles with poor public services like healthcare and education, burdening its working middle class. Finance Minister Swarnim Wagle aims to reform the tax system to reduce this burden and promote economic growth.
Key Points
- Nepal's personal income tax rate reaches a high of 39 percent, among the highest in South Asia.
- Despite high taxes, Nepal suffers from inadequate public services such as healthcare, education, and transport.
- Finance Minister Swarnim Wagle plans to reduce tax burdens on the middle class and reform the tax system.
- Experts recommend raising tax thresholds and adjusting capital gains tax to improve compliance and revenue collection.
