Budget introduces hedge fund, legal reforms and major tax cuts for fiscal year 2026-27
Summary
Finance Minister Swarnim Wagle unveiled the 2026-27 budget featuring a new hedge fund, legal reforms to stimulate foreign capital inflows, a tax dispute settlement scheme, and significant tax cuts to support consumers and industries.
Key Points
- Finance Minister Swarnim Wagle introduced a reform-heavy budget for fiscal year 2026-27 including a new hedge fund.
- Legal amendments were announced to facilitate investment approvals, profit repatriation, and capital gains tax, enabling NRNs to access the secondary securities market.
- The budget proposes a tax dispute settlement scheme allowing withdrawal of court cases upon payment of disputed taxes with a surcharge.
- Significant tax relief includes scrapping excise duties on 360 goods, reducing customs duties on 273 raw materials, and capping the maximum income tax bracket at 29 percent.
