Kathmandu, May 29: The government has set a limit of Rs 1 million for individual taxpayers in budget estimates for the upcoming fiscal year. Reading out the budget estimates at the joint sitting of the federal parliament today, Finance Minister Dr Swarnim Wagle announced an overhaul of the tax system.
A comprehensive review has been made in the tax system to make the overall economy dynamic through the expansion of the middle class, he said.
Similarly, to encourage industrial production, he said that arrangements have been made to reduce customs duty on industrial raw materials by at least one level compared to readymade goods. Under this, customs duty has been reduced on 273 types of raw materials, and the existing 11-level customs structure has been restructured and limited to 7 levels, he said.
Furthermore, the excise duty currently levied on 360 items has been abolished. He informed that scattered taxes including infrastructure development tax, road maintenance and improvement fees collected at customs points have been integrated and included under ‘green tax’.
Provision has been made in the budget to make the value-added tax refund system fully automated.
