CA Madhu Pokharel Discusses Budget and Economic Act
Summary
The government of Nepal has made significant changes to the Economic Act and budget, including increasing the income tax exemption limit to 10 lakh, revising VAT rates, and adjusting taxes on electric vehicles. CA Madhu Pokharel discusses these tax policies, their impact on different classes, and the challenges of budget implementation.
Key Points
- The income tax exemption limit has been increased to 10 lakh with a 1% tax rate, benefiting salaried employees significantly.
- The highest income tax rate has been reduced from 39% to 29% to encourage transparency and reduce tax evasion.
- Multiple VAT rates have been introduced, including VAT on electricity consumption beyond 50 units and ride-sharing services.
- The government has adjusted customs and excise duties, particularly increasing taxes on luxury electric vehicles while reducing them for industrial raw materials to support domestic production.
