NEPAL BUDGET 2076/77 (2019/20) - Highlights from Tax Perspective - www.nbsm.com.np
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NEPAL BUDGET
2076/77 (2019/20)
Highlights from Tax
Perspective
www.nbsm.com.np
Table of Content Budget Objectives 4 Budget Summary 5-10 Taxation General 11 Income Tax 12-25 Value Added Tax 26-29 Excise Duty 30-32 Customs Duty 23-49
Government's Long Term Objective: Prosperous Nepal, Happy Nepalese ;Da[4 g]kfn, ;'vL g]kfnL
OBJECTIVES OF BUDGET
2076/77
• Qualitative reform in standard of
living of citizens by fulfilling the
fundamental necessities and
fundamental rights of general
people.
• Rapid economic development with
social justice by optimum utilization
and equitable distribution of
available means, resources,
opportunities and potentials.
• Transform into middle-income
nation by 2030 A.D. by developing
economic, physical and social
infrastructure and lay down the
foundation for prosperous and
socialism-oriented economy.
PRIORITIESS OF BUDGET
2076/77
• Construction of Public welfare state administration with the
eradication of extreme poverty, rapid upliftment of backward
area, category and community along with the extension of
social security.
• Construction of national capital, creation of employment and
increase in income through enhancement of productive
capacity, transformation relating to production and
cooperation of public, private and cooperative sector.
• Development and construction of physical structure of
national strategic importance, implementation of incomplete
projects and development of financial infrastructure like
qualitative education, health, drinking water, social and
agriculture industry, tourism.
• Promotion of governance realized to citizen through rule of
law, effectiveness of public service, accountability and public
participation in development.
• Cooperation between province and local level, Cooperative
and private sector for maximum utilization of resources,
opportunity and responsibility.
7.00%
Previous Year GDP
Growth Estimate
8.50% GDP Growth
Projection this Year
4.50%
Previous Year
Inflation Estimate
6.00%
Inflation
Projection this Year
BUDGET SUMMARY
Budget Allocation
Total Budget Size Amount (Billions) Percentage Allocation of Budget
Current Expenditure
Current Expenditure 957.10 62.43%
11%
Capital Expenditure 408.01 26.62% Capital Expenditure
27%
62%
Financial Management 167.86 10.95% Financial Management
Total Budget Allocated 1,532.97 100.00%
Sources Of Budget Financing
Revenue Sources Amount in Billions Percentage REVENUE SOURCES
Amount in Billions Percentage
1,532.97
Tax revenue 981.14 64.00%
Foreign Grant 58.00 3.78%
981.14
Foreign Debt 298.83 19.49%
298.83
Internal Debt 195.00 12.72%
195.00
100.00%
64.00%
19.49%
12.72%
58.00
3.78%
Total 1,532.97 100.00%
TAX FOREIGN FOREIGN INTERNAL TOTAL
REVENUE GRANT DEBT DEBT
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 7 Page 7
BUDGET SUMMARY
Major Highlights of Budget 2076/77
• Allocation of Budget of Rs. 163 billion to the education sector with the objective to receive
the full literacy rate in 70 districts in the upcoming financial year and bring one window policy
for operation off all universities.
• Primary health service to be made free of cost from all local level medical service provider
institutions and all Nepalese to be brought under health insurance net with the allocation of
Rs. 68.78 billion in health sector.
• Rs. 5.1 billion has been allocated to The Prime Minister Employment Program to create
more employment opportunities in the economy and thereby reduce the foreign employment
rate.
• The government has increased the elderly allowance from Rs. 2000 to Rs. 3000 per month
for citizens of 70 years and above. Also the government will bear the cost of health
insurance premium for insurance coverage upto Rs. 100 thousand for all citizens of over
seventy years of age and person below poverty line.
• Rs. 34.80 billion has been allocated to the agriculture sector with 8.10 billion to Prime
Minister Agriculture Program to encourage the people returned from foreign employment to
enter into organic agriculture business.
• Land Act to be introduced for ensuring the sustainable utilization of the land and the
digitalization of all land ownership papers and blueprints within 2 years.
• The Scope of Cooperatives to be extended to tourism, industry, energy, education and
health sectors along with agriculture and cooperative credit information centre and credit
and deposit fund of the cooperative to be established.
• Visit Nepal 2020 campaign will be celebrated and promoted world wide..
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 8 Page 8
BUDGET SUMMARY
Major Highlights of Budget 2076/77 Continued……
• Local products will be promoted and prioritized to make the country self
dependent in 2 dozens industrial products.
• Closed and Sick industries will be revived by the help of private sector and
cooperatives and made in Nepal products will be made mandatory for gift-
giving purpose at International Seminars and Foreign Visits.
• Challenge fund will be set up for providing an initial capital for operating new
and small industry and Mining sector will be explored through Public Private
Participation.
• Dry port to be established in Chobhar and Rasuwagadhi and the commercial
trade with the third countries shall be commenced through the use of Port of
China.
• Export of Organic tea to be promoted and in order to ensure the domestic
market, auction house shall be established.
• Rs. 83.49 billion to be allocated to the Hydro electricity sector with the
objective of establishing at least two big hydro power in all provinces and
producing and adding 1000 MW in national grid in upcoming fiscal year.
• PPP (Public Private Partnership) module will be explored in Huge
Hydroelectricity Projects implementation and local government to get budget
to produce electricity from waste and garbage.
• Rs. 163.52 billion has been allocated to the roadway and railway
development with Rs. 19.18 billion being allocated to the express East West
Highway and Rs.6.27 billion to the Nagdhunga surung marga.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 9 Page 9
BUDGET SUMMARY
Major Highlights of Budget 2076/77 Continued……
• East-West and North-South railway to be developed and Rs 7.7 billion to
be allocated in order to explore PPP model for monorail and metro in
the valley.
• Rs. 5.7 billion has been allocated for joining the centre of local level to
province capital through black topped road and the budget of Local
Infrastructure Development Partnership Program to be increased from
40 million to 60 million.
• Digital Nepal framework to be promoted and will be brought into
operation and in upcoming 5 years all the government transactions will
be digitalized.
• Cyber security law will be made more strict and Nepal’s own satellite to
be established.
• Arrangement for depositing the gold and silver in the BFIs will be made
and national payment gateway to be promoted and hence cash
transactions to be reduced.
• All kinds of securities transaction in secondary market shall be made
digital to enable the NRN to invest in securities market as well and PAN
system to be implemented in share market.
• Government staff salary for gazetted officers and non-gazetted officer to
be increased by 18% and 20% respectively and all other incentives and
facilities are kept unchanged.
• 15th year plan for sustainable development will be implemented from
Shrawan 2076
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 10 Page 10TAXATION
General : Health, Education, Infrastructure, Telecommunication Casino
• Government has introduced HEALTH RISK TAX which will be applicable to the entities involved on
the production/import of Cigarette, Cigar, Bidi, Khaini, Surti, Pan Masala, Gutkha.
Tax Applicable: In case of Cigarette, Cigar, Bidi : NPR 25 Paisa Per Stick (Khilli)
In case of Khaini, Surti, Pan Masala, Gutkha : NPR 25 Rupees Per Kg
• Education tax shall be levied at 2% while exchanging foreign currency as
education fee by the students going abroad for studies.
• Infrastructure tax shall be levied at the rate of Rs. 5 per litre on import of Air
fuel, Petrol and diesel at customs point.
• Telecommunication Service Charge to be levied at 13% which will be
imposed by telecom industries on the telecommunication charges made to
the customer.
• Casino Royalty shall be charged as :
To General Casino 40 Million Per annum
To Casino using Modern Machine 10 Million Per annum
Equipment
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 11 Page 11INCOME TAX
General : Exemptions to the Person who want to
Regularize their Tax Compliances
• Special Provision for waiver of Tax, Fines, Penalties and
Interest upto Fiscal Year 2075/76 for business started with
innovative thinking, Skill , entrepreneurship and
technology : Any person or institution involved in the
business with innovative thinking, skill, entrepreneurship and
technology who have not come under the purview of tax, if
takes PAN and gets registered to VAT within Poush End 2076,
then all the tax, fine, additional amount, fee and interest prior
to FY 2075/76 shall be exempted.
General : Provisions relating to Social Security
Fund
• In case of single natural person having annual income up to
Rs. 400,000 and couple having annual income up to Rs.
450,000 from employment as per Annexure 1 of Income Tax
2058, the tax shall be levied at the rate of 1%.
• Such amount shall have to be deposited into the Separate
revenue account.
• However the tax under this section shall not be levied on
pension income and income of natural person who contributes
to contribution based pension fund.
Provision of Revised Return
• Any error on tax return submitted can be rectified by
submitting revised tax return within 30 days from the date
of submission of erroneous tax return.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 12 Page 12INCOME TAX
PERSONAL TAX
For Resident Person
There has been change in the Tax slab applicable to the Resident Person from the Budget this year. Details of the applicable tax rates have been provided
below.
FY 2076/77 FY 2075/76
Particulars
Rs. Tax Rate Rs. Tax Rate
Assessed as Individual
First Tax slab 4,00,000 1% First Tax Slab 3,50,000 1%
Next 1,00,000 10% Next 1,00,000 10%
Next 2,00,000 20% Next 200,000 20%
Next 13,00,000 30% Next 13,50,000 30%
Balance Exceeding 20,00,000 36% Balance Exceeding 20,00,000 36%
Assessed as Couple
First Tax Slab 4,50,000 1% First Tax Slab 4,00,000 1%
Next 1,00,000 10% Next 1,00,000 10%
Next 2,00,000 20% Next 200,000 20%
Next 12,50,000 30% Next 13,00,000 30%
Balance Exceeding 20,00,000 36% Balance Exceeding 20,00,000 36%
For Non-Resident Person
S. N. Nature of transaction FY 2076/77 FY 2075/76
1. Income earned from normal transactions. 25% flat rate 25% flat rate
a. Income earned from providing shipping, air transport or telecommunication 5% 5%
services, postage, satellite, optical fiber project.
b. Income earned providing shipping, air transport of telecommunication services 2% 2%
through the territory of Nepal.
c. Repatriation by Foreign Permanent Establishment. 5% 5%
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 13 Page 13INCOME TAX
Notes:
1. Natural person working at remote areas are entitled to get deduction
from taxable income to a maximum of Rs. 50000.
2. Natural person with pension income shall not be entitled to Social
Security Tax.
3. Incapacitated natural person shall be entitled to get deduction from
taxable income an additional 50% of amount prescribed under first tax
slab.
4. A Resident natural person who has procured life insurance and paid
premium amount thereon shall be entitled to a deduction of actual annual
insurance premium or Rs. 25000 whichever is less from gross taxable
income.
5. A Resident natural person who has procured Health Insurance and paid
premium amount thereon shall be entitled to a deduction of actual annual
insurance premium or Rs. 20000 whichever is less from gross taxable
income.
6. In case of the employee employed at the foreign diplomatic mission of
Nepal only 25% of the foreign allowances are to be included in the
income from salary.
7. In case of the employee posted outside Nepal is getting foreign
allowance will get 75% rebate of such allowance.
8. In case of the female employee whose taxable income is only from
employment than 10% rebate is allowed on tax liability.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 14 Page 14INCOME TAX
The major changes brought forward by the Finance bill 2076 relating to Income Tax:
Section Amended Provision Existing Provision
Tax rate applicable for cooperatives involved in financial transactions as follows:
Cooperatives operating in municipal areas: 5% Tax rate applicable for cooperatives registered under
11 (2) & Sch - 1 Cooperatives operating in metropolitan and sub-metropolitan areas: 10% Cooperatives Act excluding those operating in rural
However the tax for cooperatives not involved in financial transaction and not exempted u/s 11 (2) shall be municipalities and involved in agriculture sector : 20%
levied at 20%.
Following tax concession will be provided on income from special industries operating fully in any financial
year:
11 (2)(Kha) Resident natural person falls under tax slab of 30% or more: 1/3rd concession on tax New Provision introduced by Finance Bill 2076
In case of entity: 20% concession on tax
Note: above person can also avail other tax concession under section 11.
Following tax concession will be provided on income generated on export which source is in Nepal:
25% tax concession for resident natural person falls under tax slab of 20%.
Tax concession of 25% shall be provided on income
50% tax concession for resident natural person falls under tax slab of 30%.
11 (3)(Nga) generated from export of goods by production oriented
20% tax concession for entity.
industries.
50% tax tax concession on income generated from export of goods by production oriented industries after
deducting above tax concession.
Following tax concession will be provided on income generated by entity from following activities:
20% tax concession on operation of tram & trolley bus. 40% tax concession shall be provided on applicable tax
20% tax concession on construction & operation of ropeway, cable car, railway, tunnel, overhead bridge. rate on income generated from construction and
11(3)(Cha)
40% tax concession on construction and operation of airport. operation of road, bridge, airport, and tunnel or
52% tax concession on construction & operation of road, bridge, & tunnel. investment and operation of tram & trolley bus.
52% tax concession on investment & operation of tram & trolley bus.
20% tax concession on taxable income generated by any entity from construction, operation and handover of
11(3)(Tha) public physical infrastructure project and construction of power house, production and transmission of New Provision introduced by Finance Bill 2076
electricity.
The remuneration and wages paid to the employees and workers not having Permanent Account Number
21(1)(Gha)(1) New Provision introduced by Finance Bill 2076
(PAN) shall be disallowed for tax purpose.
The expense relating to the invoice not containing PAN exceeding invoice value of
21(1)(Gha)(2) New Provision introduced by Finance Bill 2076
Rs. 1000 shall be disallowed for Tax purpose.
The letter of intent for the merger shall be submitted to
47(Ka) (6) The letter of intent for the merger shall be submitted to Inland Revenue Department until 2077 Ashad end.
Inland Revenue Department until 2076 Ashad end
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 15 Page 15INCOME TAX
The major changes brought forward by the Finance bill 2076 relating to Income Tax contd..:
Section Amended Provision Existing Provision
47 (Ka) (7) The merger process of entities submitting letter of intent
The merger process of entities submitting letter of intent shall be completed by 2078 Ashad End.
shall be completed by 2077 Ashad End.
Person doing the transactions by taking PAN shall mandatorily update the information regarding their
78 (4A) New Provision introduced by Finance Bill 2076
registration under biometric system within prescribed time frame .
In cases where the amount of instalment to be paid as
In cases where the amount of instalment to be paid as instalment tax is less than Rs.7,500, the person need
94 (2) instalment tax is less than Rs.5000, the person need not
not file the estimated tax return.
file the estimated tax return.
In case of listed securities, the person dealing in securities exchange (shall collect advance tax) at the rate in case of listed securities, the person dealing in securities
5% of gain in case of a resident natural person and 10% of gain in case of resident entity and 25% of gain in exchange (shall collect advance tax) at the rate 7.5% of
95(Ka) (2)
case of others. gain in case of a resident natural person and 10% of gain in
Further while calculating gain, Weighted average cost shall be taken into consideration. case of resident entity and 25% of gain in case of others
In case of disposal of land and building other than NBCA of a natural person, the rate of advance tax In case of disposal of land and building other than NBCA of
95(Ka)(6)
collection is 1.5%. a natural person, the rate of advance tax collection is 10%.
The Custom Frontier shall collect advance tax at 5% of value determined for customs purpose, in case of
import of following goods:
a. He buffalo, buffalo, he goat, sheep, chyangra falling under part 1 of HCS.
b. Love, frozen or fresh fish under part 3 of HCS. The Custom Frontier shall collect advance tax at 5% of
c. Fresh flowers under part 6 of HCS. value determined for customs purpose, in case of import of
d. Fresh Vegetables, potato, onion, dried vegetables, garlic, baby corn under part 7 of HCS. following goods:
e. Fresh fruits under part 8 of HCS. a. He buffalo, buffalo, he goat, sheep, chyangra falling
95 (Ka)(7) Further the custom Frontier shall collect advance tax at 2.5% of value determined for customs purpose, in under part 1 of HCS.
case of import of following goods:: b. Love, frozen or fresh fish under part 3 of HCS.
a. Meat under part 2 of HCS. c. Fresh flowers under part 6 of HCS.
b. Milk products, egg, honey under part 4 of HCS. d. Fresh Vegetables, potato, onion under part 7 of HCS.
c. Millet, buckwheat, junelo rice, broken rice under part 10 of HCS. e. Fresh fruits under part 8 of HCS.
d. While Flour, Flour (Aata), Pitho under part 11 of HCS.
e. Herbs , sugarcane under part 12 of HCS
f. Vegetation related production under part 14 of HCS.
Any error on tax return submitted can be rectified by submitting revised tax return within 30 days from the
96(6) New Provision introduced by Finance Bill 2076
date of submission of erroneous tax return.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 16 Page 16INCOME TAX
The major changes brought forward by the Finance bill 2076 relating to Income Tax cond..:
Section Amended Provision Existing Provision
If it has been proved that beneficial owner is other than business registering person,
110(Ga) New Provision introduced by Finance Bill 2076
the liability to payment the tax of such business shall be of beneficial owner.
The taxpayer who makes an application to Administrative
The taxpayer who makes an application to Administrative appeal has to pay the full amount
115(6) appeal has to pay the full amount of undisputed tax and 1/3rd
of undisputed tax and 1/4th of the disputed tax.
of the disputed tax.
In case income details of any income year are not submitted
In case income details of any income year are not submitted pursuant to Sub-section (1)
117(1)(Ka) pursuant to Sub-section (1) of Section 95, fees at the rate
of Section 95, fees at the rate of Rs. 5,000 for each detail shall be imposed.
of Rs. 2,000 for each detail shall be imposed.
Presumptive tax rate:
Presumptive tax rate:
For natural person doing business in Metropolitan City & Sub
For natural person doing business in Metropolitan City & Sub Metropolitan city: 7500
4(4) Metropolitan city: 5000
For natural person doing business in Municipality: 4000
For natural person doing business in Municipality: 2500
For natural person doing business in other areas: 2500
For natural person doing business in other areas: 1500
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 17 Page 17INCOME TAX
The major changes brought forward by the Finance bill 2076 relating to Income Tax are :
The Criteria for assumption of presumptive Taxpayer under this section includes:
Resident Natural Person who fulfills all the following conditions:
a) The person generates income only from business having source in Nepal
b) The person does not claim Medical Tax Credit
c) The person does not claim advance tax arising out of tax withheld by withholding agent
d) The transaction of the business exceeds Rs. 20 Lakhs and is less than Rs. 50 Lakhs
e) The person is not registered for VAT purpose, and
f) The person does not have income related to consultancy and expert professional services including that provided by doctor, engineer, auditor,
lawyer, sportsman, artist, and consultant.
Section 4 (4A) The tax rate applicable shall be as follows:
Particulars Amended provision Existing provision
For person dealing in cigarette, gas, etc. in which the person
0.25% of transaction amount 0.75% of transaction amount.
makes sales by adding 3% commission or profit
For persons dealing goods besides that specified above 0.75% of transaction amount. 0.25% of transaction amount.
Persons dealing in service business 2% of transaction amount. 2% of transaction amount.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 18 Page 18INCOME TAX
The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:
Tax Rates:
Section Nature of entity FY 2076/77 FY 2075/76
Company/Firm /Industry
Domestic income
Normal Rate (NR) 25% 25%
Other
Providing direct employment to Nepalese citizens by special industries and information
technology industries for whole year:
For 100 or more Nepali National 90% of Normal Rate 90% of Normal Rate
For 300 or more Nepali National 80% of Normal Rate 80% of Normal Rate
11(3) (Ka)
For 500 or more Nepali National 75% of Normal Rate 75% of Normal Rate
For 1000 or more Nepali National 70% of Normal Rate 70% of Normal Rate
For 100 Nepalese including 33% women, dalit & disabled by Special industries. Additional 10% rebate Additional 10% rebate
a. Special Industries established with more than one billion capital and provide direct
employment more than 500 peoples for a complete year or,
11 (3) Ga 100% Income is exempt from tax for the first 5 years from the date
b. New Industry related to Tourism and Aviation with more than two billion capital or,
and of commencement of production and 50% of income is exempt
11(3Ta) from tax for next 3 years.
c. Running industry with substantial expansion (at least 25% of existing capacity) with
capital not less than one billion and provide direct employment more than 500
peoples for complete year.
Industries establishment in very undeveloped areas (sec 11.3.b) as defined in Industrial 10% of the normal rate (for 10 years from the year of
Enterprise Act. establishment)
11 (3) Kha
Industries establishment in undeveloped areas (sec11.3.b) as defined in Industrial 20% of the normal rate (for 10 years from the year of
Enterprise Act establishment)
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 19 Page 19INCOME TAX
The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:
Tax Rates:
Section Nature of entity Applicable for both FY 2076/77 and FY2075/76
Established in underdeveloped areas (Sec 11.3.b). as defined in Industrial
11 (3) Kha 30% of the normal rate (for 10yrs from the year of establishment)
Enterprise Act
Industry established in 'Special Economic Zone' recognized in mountain areas or
11 (3Ka) Up to 10 years 100% exempt and 50% rebate in subsequent years
hill areas by the GON
100% exempt up to first five years and 50% rebate in subsequent
11 (3Ka) Industry established in 'Special Economic Zone' other than above locations
years
Dividend Tax is 100% exempt up to first five years and 50% rebate
11 (3Ka) Dividend distributed by the industry established in the special economic zone
in subsequent 3 years
Income derived by the foreign investors from investment in 'Special Economic
11 (3Ka) Zone'( source of income use of foreign technology, management service fee and 50% of applicable tax rate
royalty)
Dividend Distribution Tax in case Special Industry, Industry based in Agriculture
11 (3Tha) and Tourism sector capitalizing its profit for the purpose of expansion of capacity of 100% exempt
industry.
Import income of information technology industries as IT Park as declared by
11 (3Ga) 50% of normal tax rates
government.
Institution having licensed to generate, transmit, and distribute electricity shall be
allowed if the commercial activities started in terms of electricity generation ,
100% exempt up to ten years and 50% rebate on subsequent 5
11 (3Gha) generation and transmission, generation and distribution or generation,
years.
transmission distribution before B.S 2080 Chaitra and these exemption shall also
be available for solar, wind and other alternative energy companies.
11 Income manufacturing industry, tourism service industry hydropower generation,
(3Ch distribution and transmission industry listed in the security exchange (i.e. capital 85% of applicable tax rate
ha) market)
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 20 Page 20INCOME TAX
The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:
Tax Rates:
Section Nature of Entity Applicable for both FY 2076/77 and FY2075/76
Industry established in least developed area producing
11 (3Ja) 60% of applicable tax rate up to 10 years
brandy, wine, cider from fruits
Income Generated by Minerals, Petroleum & Natural Gas 100% exemption for first 7 years for next 3 years 50% exemption from Income Tax if Commercial
11(3Kha)
Industries by Exploration and Extraction Production is started by Chaitra 2080
11 (3Jha) Royalty from export of Intellectual Asset by a person 75% of applicable tax rate
Income from sale by intellectual asset by a person through
11 (3Yna) 50% of applicable tax rate
transfer
Rate as per nature of vehicles
1. Car, Jeep, Van and Micro Bus
Up to 1300CC Rs. 4,000
From 1301 CC to 2000 CC Rs. 4,500
From 2001 CC to 2900 CC Rs. 5,000
From 2901 CC to 4000 CC Rs. 6,000
Above 4001 CC Rs. 7,000
Sch 1(13) Presumptive tax in case a Resident Natural Person is
2. Mini Truck, Mini Bus & Water tanker Rs. 6,000
engaged in business of Public Vehicles
3. Mini Tripper Rs. 7,000
4. Truck & Bus Rs. 8,000
5. Dozers, Excavator, Loader, Roller, Crane
and like such machinery equipment Rs.12,000
6. Oil tanker, Gas Bullet and tripper Rs.12,000
7. Tractor Rs. 2,000
8. Power tiller Rs. 1,500
9. Auto Rickshaw, Three wheeler, Tempo Rs. 2,000
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 21 Page 21INCOME TAX
The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:
Tax Rates:
Section Nature of Entity Applicable for both FY 2076/77 and FY2075/76
Pvt Company having Paid of Capital of NPR 500 Million if converted in
11 (3Da) 10% deduction in Income Tax Rate for the Period of 3 years
Public Company & Transact except for sec 12 of Company Act
Domestic Tea Production & Processing Industries, Dairy Industries & Textile
11 (3Dha) 50% of applicable tax rate
Industries
11 (3Ana) Health Services Provided by the Community 20% Reduction of Income Tax Act
100% tax exemption for the first 5 years from operation. If such Industries
11 (3 Ta) Micro Industries (As defined under Industrial Enterprises Act, 2073)
are run by Women, 100% exemption for further 2 years
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 22 Page 22INCOME TAX
The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:
Tax Rates for special entities:
Section Nature of entity FY 2076/77 FY 2075/76
Bank and Financial Institution
Commercial banks, Development Banks and Finance companies 30% 30%
Insurance business
General insurance business 30% 30%
Petroleum Industries
Sch 1 Sec Entity engaged in Petroleum business under Nepal Petroleum Act , 2010 30% 30%
2(2) Merchant Banks, Telecommunication and Internet Services Industry, Money Transfer Capital
Market, Commodity Future Market, Securities Brokers and Companies involved in securities 30% 30%
business
Entities transacting in petroleum under pertroleum Act 2040 except for the cases set forth 100% exempted up to seven years and 50% rebate on
u/s 11 (3 Kha) subsequent 3 years
Non resident carrying on air and water transport and Telecommunication services in Nepal :
Sch 2 Sec 5% 5%
a. If the goods and Passengers embarking from Nepal
6 2% 2%
b. If a person books ticket from Nepal but the departure is from any foreign country
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 23 Page 23INCOME TAX
WITHHOLDING TAXES/(TAX DEDUCTED AT SOURCE)
Section Nature of transaction FY 2076/77 FY 2075/76
Interest income from deposit up to Rs 10000 under 'Micro Finance Program', 'Rural Development
A. Exempt from tax Exempt from tax
Bank', 'Postal Saving Bank' & Co-Operative (u/s-11(2ka) in Village Municipality areas
Wind fall gains
25% 25%
B. Wind fall gains from Literature, Arts, Culture, Sports, Journalism, Science & Technology and Public
Nil Nil
Administration amount received up to 5 lacs
Payment of rent by resident person having source in Nepal
C. 10% 10%
However no TDS on payment of rent to natural person.
D. Profit and Gain from Transaction of commodity future market 10% 10%
Profit and Gain from Disposal of Shares:
In case of Individual 7.5%
5%
- Listed Shares 10%
10%
- Non Listed Shares
Resident Entity
10%
E. - Listed Shares 10%
15%
- Non Listed Shares 15%
Others
25%
- Listed Shares 25%
25%
- Non Listed Shares 25%
On dividend paid by the resident entity.
F. - To Resident Person 5% for both 5% for both
- To Non Resident Person
G. On payment of gain in investment insurance 5% 5%
H. On payment of gain from unapproved retirement fund 5% 5%
On payment of interest or similar type having source in Nepal to natural person [ not involved in any
I. 5% 5%
business activity by Resident Bank, financial institutions or debenture issuing entity, or listed company
Payment made by natural person relating to business or other payments relating to house rental except
J. No TDS No TDS
house rent
K. Payment for articles published in newspaper No TDS No TDS
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 24 Page 24INCOME TAX
WITHHOLDING TAXES/(TAX DEDUCTED AT SOURCE)
Section Nature of transaction FY 2076/77 FY 2075/76
L. Interest payment to Resident bank, other financial institutions No TDS No TDS
M. Interregional interchange fee paid to credit card issuing bank No TDS No TDS
N. Interest or fees paid by Government of Nepal under bilateral agreement No TDS No TDS
O. On payment of general insurance premium to resident insurance company No TDS No TDS
P. On payment of premium to non-resident insurance company 1.5% 1.5%
Q. Contract payment exceeding Rs 50000 for a single contract within 10 days. 1.5% 1.5%
R. Interest & Dividend paid to Mutual Fund No TDS No TDS
Payment of consultancy fee:
S. - to resident person against VAT invoice 1.5% 1.5%
- to resident person against non VAT invoice 15% 15%
Payment on contract to Non Resident Person
- On service contract(For both Resident & Non Resident Person) 15%
T. 15%
- On repair of aircraft & other contract 5%
5%
- In cases other than above as directed by IRD.
U. TDS deducted on payment of dividend made by Mutual fund to natural Person is final withholding Tax. 5% 5%
TDS on Payment by Resident Person for utilizing services related with Satellite, Bandwidth, Optical
V.
Fiber, equipment relating to telecommunications or electric transmission 10% 10%
W. Dividend Paid by Partnership Firm to its Partners 5% 5%
X. Payment for the freight to transportation service 2.5% 2.5%
Y. Payment made against question setting, answer evaluation 15% TDS 15% TDS
Z. Payment to Non Resident Company against Insurance Premium 1.5% 1.5%
AA. Payment to Non Resident Company against Commission paid for Reinsurance 1.5% 1.5%
AB. Payment made to Consumer Committee 1.5% 1.5%
AC. Commercial Import of Buffalo, Goat, Sheep, Fresh & Frozen Fish, Fruits, 5% of Custom Value 5% of custom value
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 25 Page 25VALUE ADDED TAX
- No changes in the existing Value Added Tax rate of 13 percent
for the fiscal year 2075/76 except stated in Schedule 1 and
Schedule 2.
- For promoting export , the bonded ware house facility shall be
provided to the industry exporting more than 20% of total
production in case of import of raw materials.
- The threshold for doing the taxable transaction has not been
changed i.e. 5 million for person dealing in goods, 2 million for
service provider and 2 million for person involved in both the
transactions.
- The exemption of VAT on Wheat and Meslin Flour (H. Code
1103.11.00) and Soyabean has been removed.
- The Vat exemption on Herbicides Ant sprouting Products
(H.Code. 3808.93.00) has been removed and Vat exemption
provided to Herbicides only via (H. Code. 3808.93.10)
- Vat exemption has been provided on Accessories and parts of
Factory generating electricity from wind (H. Code. 8502.31.00)
and Solar Panels and Modules (H. Code 8541.40.00).
- The VAT exemption is provided in case of medical and health
insurance.
- The person dealing with the scrap business is kept under the
coverage of VAT and beauty parlors is excluded from the
compulsory registration of VAT.
- The VAT exemption on transportation of goods (except in
relation to supplies) has been removed.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 26 Page 26VALUE ADDED TAX
The major changes brought forward by finance bill 2076/77 relating to VAT are as :
Section Amended Provision Existing Provision
Where the transaction of goods or services of a person becomes
Where the transaction of goods or services of a person becomes taxable or the taxable or the person conducts following transactions, the person shall
person conducts following transactions, the person shall make an application in make an application in the prescribed format for the purpose of
the prescribed format for the purpose of registration in front of tax officer within 30 registration in front of tax officer within 30 days of transaction being
days of transaction being taxable or operation of transaction: taxable or operation of transaction:
a. Operation of business related to brick production, alcohol, wine , health club, a. Operation of business related to brick production, alcohol distributor,
disco theque, massage therapy, motor parts, electronic software, customs agent, wine shop, software, trekking, rafting, ultra light flight, paragliding,
toys and scrap business, trekking, rafting, ultra light flight, paragliding, tourist tourist vehicle, crusher, sand mine, slate or stone.
10 (2) vehicle, crusher, sand mine, slate or stone.
b. Where a person conducts business of hardware, sanitary, furniture,
b. Where a person conducts business of hardware, sanitary, furniture, fixture, fixture, furnishing, automobiles, motor parts, electronics, marble,
furnishing, automobiles, motor parts, electronics, marble, Educational and Legal educational consultancy, disco theque, health club, massage therapy,
consultancy, Account and Audit related services., catering service, party palace, beauty parlour, catering service, party palace, parking service, dry
parking service, dry cleaners using machinery, restaurant with bar, ice cream cleaners using machinery, restaurant with bar, ice cream industry, color
industry, colour lab, boutique, Tailoring with shirting suiting materials, uniform lab, boutique, Tailoring with shirting suiting materials, uniform supplier
supplier for educational, health or other entities inside Metropolitan City, Sub for educational, health or other entities inside Metropolitan City, Sub
Metropolitan City, Municipality or areas Metropolitan City, Municipality or areas
Person registered under this act shall mandatorily update the information and
10 (2) Ga document regarding their registration under biometric system within prescribed New Provision introduced by Finance Bill 2076
time frame
While making payment of Tax exceeding Rs. 10 lakhs, it must be made through
19 (7) Ka New Provision introduced by Finance Bill 2076
cheque, draft or electronic means
A registered person may file a claim to a tax officer for a lump sum refund, as A registered person may file a claim to a tax officer for a lump sum
24 (3) prescribed, of the amount of the remaining excess after offsetting for a continuous refund, as prescribed, of the amount of the remaining excess after
period of four months under this section. offsetting for a continuous period of six months under this section.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 27 Page 27VALUE ADDED TAX
The major changes brought forward by finance bill 2076/77 relating to VAT are as :
Section Amended Provision Existing Provision
Tax amount paid by the diplomat of a foreign country on purchase of taxable Goods
25 (1) Ka1 or Services in Nepal under the recommendation of Minstry of Foreign affairs, Nepal New Provision introduced by Finance Bill 2076
Government shall be refunded.
Tax refund to the foreign diplomats shall not be given on the purchase of goods and Tax refund to the foreign diplomats shall not be given on the
25 (1Ka)
services of less than Rs. 10000 at a time. purchase of goods and services of less than Rs. 5000 at a time.
10% of VAT of the related invoice will be deposited to bank account of buyer on
25 (1Kha) purchase of goods or services through card or online mechanism. Withholding tax New Provision introduced by Finance Bill 2076
shall not be deducted in such refund
The person not submitting the changes in registration details within 15 days to the
29 (1) Kha (2) New Provision introduced by Finance Bill 2076
Tax Officer shall be fined with the amount of Rs. 10,000 for each instances.
Breach of sec 14 (1) of Vat Act, for person not issuing tax invoice, fine of Rs.10,000
For breach of Sub-sections (1) and (4) of Section 14, the amount of
29 (1) Ga for each instance and for person not taking invoice fine of Rs. 1000 for each instance
Rs.5000 for each instance
.
Breach of sec 14 (4) of Vat Act, for person not carrying the tax invoice for
29 (1) Ga 1 transportation of goods exceeding value Rs. 10,000, fine of Rs.10,000 for each New Provision introduced by Finance Bill 2076
instance.
The taxpayer who makes an application to Administrative appeal
The taxpayer who makes an application to Administrative appeal has to pay the full
31 Ka has to pay the full amount of undisputed tax and 1/3rd of the
amount of undisputed tax and 1/4th of the disputed tax
disputed tax.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 28 Page 28VALUE ADDED TAX REGULATION
The major changes brought forward by finance bill 2076/77 relating to VAT are as :
Rule New Provision Existing Provision
Government entity, Public institution, or association or registered person
Government entity, Public institution, or association or registered person
while providing contract in excess of rupee 500 thousand per annum or while
6 Ka (2) while receiving contract or Consultancy services in excess of rupee 500
receiving consultancy services in excess of rupee 100 thousand per annum
thousand per annum shall receive from a registered person only.
shall give or receive to/ from a registered person only.
Government entity, Public institution, or association or registered person
while making the payment for contract agreement or contract or supply of
goods or services, out of the tax payable to the party, 50% of the amount
6 Ga shall have to be deposited directly to the related revenue head direclty in the New Provision introduced by Finance Bill 2076
name of party and only remaing 50% to be paid to the party. However the
concerned contractor or supplier can set off such amount against the tax
payable.
If a registered person exports more than Forty percent of his/her total If a registered person exports more than Fifty percent of his/her total monthly
monthly sale carried out in any month, he has to make an application, sale carried out in any month, he has to make an application, accompanied
39 (5) accompanied also by necessary documents related with the export, to the also by necessary documents related with the export, to the Tax Officer in the
Tax Officer in the format as referred to in Schedule-10 to get refund of the format as referred to in Schedule-10 to get refund of the deductible tax which
deductible tax which has became excess for that month. has became excess for that month.
For purposes of Section 17 of the Act, tax deduction shall not be allowed in For purposes of Section 17 of the Act, tax deduction shall not be allowed in
41 (1) Gha
petroleum products (petrol, diesel and L.P gas) light petroleum (petrol) fuel for motor vehicles
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 29 Page 29EXCISE DUTY
• Zero percent facility shall be provided to
battery manufactured and supplied through
domestic industry to be used in machinery
and equipment generating solar energy with
on the recommendation of Alternative
Energy Promotion Centre.
• If the License holders engaged in production
and import, who do not renew their license
within the time prescribed as per section
9(5), then fine shall be 50% of renewal fees
for the first 3 months and for the next three
months, fine shall be 100% of renewal fees.
However, license holders engaged in
production and import who do not renew
their license within the time prescribed as
per section 9(5) but if wants to renew their
license can do so by paying the renewal fees
for each year along with fine of 100% of
renewal fees by the end of Poush 2076.
• The excise duty on cement has been
increased to Rs. 220 Per MT , Cheese balls
and Potato chips to Rs. 17 per Kg, Soft
drinks to Rs. 11 per Litre.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 30 Page 30EXCISE DUTY
Changes in Excise rate for FY 2076/77
Excise Duty (% except Excise Duty (% except
Heading Sub-Heading Particulars otherwise specified) otherwise specified) for
for FY 2076-77 FY 2075-76
Coconuts, Brazil nuts and cashewnuts, fresh or dried, whether or not shelled or
08.01
peeled
Coconuts:
0801.11.00 Desiccated 5 -
Pasta, whether or not cooked or stuffed (with meat or other Substances) or
19.02 otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi,
ravioli, cannelloni, couscous, whether or not prepared.
Uncooked pasta, not stuffed or otherwise prepared:
1902.11.00 Containing eggs 17 per kg 15 per kg
1902.19.00 Other 17 per kg 15 per kg
1902.20.00 Stuffed pasta, whether or not cooked or otherwise prepared 17 per kg 15 per kg
1902.30.00 Other pasta 17 per kg 15 per kg
1902.40.00 Couscous 17 per kg 15 per kg
Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing
19.05 cocoa, communion wafers, empty cachets of a kind suitable for pharmaceutical
use, sealing wafers, rice paper and similar products.
Other:
1905.90.20 Potatoes chips 17 per kg 15 per kg
21.06 Food preparations not elsewhere specified or included.
Other:
2106.90.20 Pan Masala without Tobacco 610 per kg 555 per kg
2106.90.60 Kurkure, kurmure, lays & Similar goods 17 per kg 15 per kg
2106.90.70 Scented areca nuts without Tobacco 225 per kg 205 per kg
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 31 Page 31EXCISE DUTY
Changes in Excise rate for FY 2076/77
Excise Duty (% Excise Duty
except (% except
Heading Sub-Heading Particulars otherwise otherwise
specified) for specified) for
FY 2076-77 FY 2075-76
Waters, including mineral waters and aerated waters, containing added sugar or other sweetening
22.02 matter or flavoured and other non-alcoholic beverages, not including fruit or vegetable juices of
Heading 20.09
Other:
2202.91.00 Non-alcoholic beer 17 per ltr 15 per ltr
Other 17 per ltr 15 per ltr
2202.99.10 Energy drinks 30 per ltr 25 per ltr
2202.99.90 Other 11 per ltr 10 per ltr
Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic
25.23
cements, whether or not coloured or in the form of clinkers.
Portland cement:
2523.21.00 White cement, whether or not artificially coloured 220 per MT 200 per MT
2523.29.00 Other 220 per MT 200 per MT
2523.30.00 Aluminous cement 220 per MT 200 per MT
2523.90.00 Other hydraulic cements 220 per MT 200 per MT
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 32 Page 32CUSTOMS DUTY
• For the accompanied /unaccompanied baggage brought for personal use (other
than custom free baggage), instead of custom duty, excise duty and VAT, flat 40 %
custom duty shall be charged except in the case of following :
a) In case of silver ornaments, cigarette, tobacco pipe, liquor, vehicles, arms and
ammunitions and other items which can be imported after taking license, charge
will be levied as per rate list.
b) In case of gold and gold ornaments,
a. Gold Upto 50 grams Rs. 6200 per 10 grams
51 to 100 grams Rs. 7200 per 10 grams
b. Gold Ornaments Upto 50 grams No charge
51 to 150 grams Rs. 7200 per 10 grams
• For import of goods (from respective countries) manufactured in India and China
directly to Nepal through Letter of Credit (L.C.), discount will be provided at value
based rate (not in quantity based rate).
Custom Rate Discount
5% to 30% 5%
Above 30% 3%
• Facility of importing raw materials by opening bank guarantee has been made
available to industries engaged in export of alcohol, cigarette and tobacco items as
well (Previously facility of importing raw materials by opening bank guarantee was
not available to industries engaged in export of alcohol, cigarette and tobacco
items.)
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 33 Page 33CUSTOMS DUTY
Changes in customs rate for FY 2076/77
Import Duty (%
Import Duty (% except
except otherwise
Heading Sub-Heading Description of Article otherwise specified)
specified) for FY
for FY 2075-76
2076-77
02.07 Meat and Edible Offal, of the poultry of Heading 01.05, fresh, Chilled or frozen.
Of fowls of the species Gallus domesticus:
0207.11.00 Not cut in pieces, fresh or chilled 30 10
0207.12.00 Not cut in pieces, frozen 30 10
0207.13.00 Cuts and offal, fresh or chilled 30 10
0207.14.00 Cuts and offal, frozen 30 10
04.02 Milk and cream, concentrated or containing added sugar or other sweetening matter
In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5%
0402.10.00 40 30
In powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5%:
0402.21.00 Not containing added sugar or other sweetening matter 40 30
0402.29.00 Other 40 30
Other:
0402.91.00 Not containing added sugar or other sweetening matter 40 30
0402.99.00 Other 40 30
04.05 Butter and other fats and oils derived from milk; dairy spreads.
0405.10.00 Butter 40 30
0405.20.00 Dairy spreads 40 30
0405.90.00 Other 40 30
07.13 Dried leguminous vegetables, shelled, whether or not skinned or split
0713.10.00 Peas (Pisum sativum) 15 10
08.01 Coconuts, Brazil nuts and cashewnuts, fresh or dried, whether or not shelled or peeled
Cashew Nuts:
0801.31.00 In shell 15 10
0801.32.00 Shelled 15 10
Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing
09.01
coffee in any proportion
Coffee, not roasted:
0901.11.00 Not decaffeinated 40 20
0901.12.00 Decaffeinated 40 20
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 34 Page 34CUSTOMS DUTY
Import Duty (% except Import Duty (% except
Heading Sub-Heading Description of Article otherwise specified) for FY otherwise specified) for FY
2076-77 2075-76
Coffee, roasted:
0901.21.00 Not decaffeinated 40 30
0901.22.00 Decaffeinated 40 30
0901.90.00 Other 40 30
09.02 Tea, whether or not flavoured
0902.10.00 Green tea (not fermented) in immediate packings of a content not exceeding 3kg 40 30
0902.20.00 Other green tea (not fermented) 40 30
Black tea (fermented) and partly fermented tea, in immediate packings of a content not
0902.30.00 40 30
exceeding 3 kg
0902.40.00 Other black tea (fermented) and other partly fermented tea 40 30
09.04 Pepper of the genus Piper; dried or crushed
0904.11.00 Neither crushed not ground 20 10
0904.12.00 Crushed or ground 20 10
12.02 Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken-
Other:
1202.42.00 Shelled, whether or not broken 15 10
17.01 Cane or beet sugar and chemically pure sucrose, in solid form
Raw sugar not containing added flavouring or colouring matter:
1701.12.00 Beet sugar 40 30
Cane sugar specified in Subheading Note 2 to this Chapter
1701.13.10 Sakhhar (Gud) 40 30
1701.13.20 Khanda sugar 40 30
1701.13.90 Other 40 30
Other cane sugar:
1701.14.10 Sakhhar (Gud) 40 30
1701.14.20 Khanda sugar 40 30
1701.14.90 Other 40 30
Other:
1701.91.00 Containing added flavouring or colouring matter 40 30
1701.99.00 Other 40 30
17.04 Sugar confectionery (including white chocolate), not containing cocoa
1704.10.00 Chewing gum, whether or not sugar coated 40 30
1704.90.00 Other 40 30
18.06 Chocolate and other food preparations containing cocoa
1806.10.00 Cocoa powder, containing added sugar or other sweetening matter 40 30
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 35 Page 35CUSTOMS DUTY
Import Duty (% except Import Duty (% except
Heading Sub-Heading Description of Article otherwise specified) otherwise specified) for FY
for FY 2076-77 2075-76
Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular
1806.20.00 40 30
or other bulk form in containers or immediate packings, of a content exceeding 2 kg
Other, in blocks, slabs or bars:
1806.31.00 Filled 40 30
1806.32.00 Not filled 40 30
1806.90.00 Other 40 30
Pasta, whether or not cooked or stuffed (with meat or other Substances) or otherwise prepared, such as
19.02
spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared
Uncooked pasta,not stuffed or otherwise prepared:
1902.11.00 Containing eggs 40 30
1902.19.00 Other 40 30
1902.20.00 Stuffed pasta, whether or not cooked or otherwise prepared 40 30
1902.30.00 Other pasta 40 30
1902.40.00 Couscous 40 30
Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion
19.05 wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar
products.
1905.10.00 Crispbread 40 30
1905.20.00 Gingerbread and the like 40 30
Sweet bisuits; waffles and wafers:
1905.31.00 Sweet biscuits 40 30
1905.32.00 Waffles and wafers 40 30
1905.40.00 Rusks, toasted bread and similar toasted products 40 30
Other:
1905.90.20 Potatoes chips 40 30
1905.90.90 Other 40 30
Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit,
20.09
whether or not containing added sugar or other sweetening matter.
Orange juice:
2009.11.00 Frozen 60 30
2009.12.00 Not frozen, of a Brix value not exceeding 20 60 30
2009.19.00 Other 60 30
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 36 Page 36CUSTOMS DUTY
Import Duty (% except Import Duty (% except
Heading Sub-Heading Description of Article otherwise specified) for otherwise specified) for FY
FY 2076-77 2075-76
Grapefruit (including pomelo) juice:
2009.21.00 Of a Brix value not exceeding 20 60 30
2009.29.00 Other 60 30
Juice of any other single citrus fruit:
2009.31.00 Of a Brix value not exceeding 20 60 30
2009.39.00 Other 60 30
Pineapple juice:
2009.41.00 Of a Brix value not exceeding 20 60 30
2009.49.00 Other 60 30
2009.50.00 Tomato juice 60 30
Grape juice (including grape must)
2009.61.00 Of a Brix value not exceeding 20 60 30
2009.69.00 Other 60 30
Apple juice:
2009.71.00 Of a Brix value not exceeding 20 60 30
2009.79.00 Other 60 30
Juice of any other single fruit or vegetable:
2009.81.00 Cranberry (Vaccinium macrocarpon, Vaccinium oxycoccos, Vaccinium vitis-idaea) juice 60 30
2009.89.00 Other 60 30
2009.90.00 Mixtures of juices 60 30
Sauces and preparations therefor, mixed condiments and mixed seasonings; mustard flour and meal and
21.03
prepared mustard.
2103.10.00 Soya sauce 20 15
2103.20.00 Tomato ketchup and other tomato sauces 20 15
2103.30.00 Mustard flour and meal and prepared mustard 20 15
2103.90.00 Other 20 15
21.05 2105.00.00 Ice cream and other edible ice, whether or not containing cocoa 20 15
21.06 Food preparations not elsewhere specified or included.
Protein concentrates and textured protein Substances
2106.10.00 20 15
Other
2106.90.10 Dalmott, Papad, Salted, Bhujyia and Chamena (titbits) 30 20
2106.90.20 Pan Masala without Tobacco 40 30
2106.90.60 Kurkure, kurmure, lays & Similar goods 40 30
Other
2106.90.91 Food supplement 20 20
2106.90.92 Herbal tea 40 20
2106.90.99 Other 30 20
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 37 Page 37CUSTOMS DUTY
Import Duty (% except Import Duty (% except
Heading Sub-Heading Description of Article otherwise specified) otherwise specified) for FY
for FY 2076-77 2075-76
Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or
22.01
other sweetening matter nor flavoured; ice and snow.
2201.10.00 Mineral waters and aerated waters 40 30
2201.90.00 Other 40 30
Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or
22.02
flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of Heading 20.09.
Waters, including mineral waters and aerated waters containing added sugar or other sweetening matter or
2202.10.00 40 30
flavoured
Other:
2202.91.00 Non-alcoholic beer 40 30
Other:
2202.99.10 Energy Drinks 75 30
2202.99.90 Other 40 30
22.03 2203.00.00 Beer made from malt 200 per ltr. 165 per ltr.
22.04 Wine of fresh grapes, including fortified wines; grape must other than that of Heading 20.09.
2204.10.00 Sparkling wine 300 per ltr. 240 per ltr.
Other wine; grape must with fermentation prevented or arrested by the addition of alcohol:
2204.21.00 In containers holding 2 L or less Per ltr. 300 per ltr. 240 per ltr.
2204.22.00 In containers holding more than 2 L but not more than 10 L 300 per ltr. 240 per ltr.
2204.29.00 Other 300 per ltr. 240 per ltr.
2204.30.00 Other grape must 300 per ltr. 240 per ltr.
Other fermented beverages (for example, cider, perry, mead, saké); mixtures of fermented beverages and
22.06
mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included.
2206.00.10 Chhayang (Country Beer) 40 30
2206.00.90 Other 40 30
Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl alcohol and other
22.07
spirits, denatured, of any strength.
2207.10.00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher 50 per ltr. 30 per ltr.
2207.20.00 Ethyl alcohol and other spirits, denatured, of any strength 50 per ltr. 30 per ltr.
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 38 Page 38CUSTOMS DUTY
Import Duty (% except Import Duty (% except
Heading Sub-Heading Description of Article otherwise specified) otherwise specified) for FY
for FY 2076-77 2075-76
Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and
22.08
other spirituous beverages.
Spirits obtained by distilling grape wine or grape marc:
2208.20.10 All kinds of alcoholic fluids including spirits used as raw material of wine or brandy 1200 per ltr 900 per ltr
2208.20.90 Other 2000 per ltr 1600 per ltr
Whiskies:
2208.30.10 Alcoholic fluids including spirits used as raw materials of whisky 1200 per ltr 900 per ltr
2208.30.90 Other 2000 per ltr 1600 per ltr
Rum and other spirits obtained by distilling fermented sugar-cane products:
Alcoholic fluids including spirits used as raw materials of Rum and other spirits obtained by distilling
2208.40.10 1200 per ltr 900 per ltr
fermented sugar-cane products
2208.40.90 Other 2000 per ltr 1600 per ltr
Gin and Geneva:
2208.50.10 Alcoholic fluids including spirits used as raw materials of Gin and Geneva 1200 per ltr 900 per ltr
2208.50.90 Other 2000 per ltr 1600 per ltr
Vodka:
2208.60.10 Alcoholic fluids including spirits used as raw materials of Vodka 1200 per ltr 900 per ltr
2208.60.90 Other 2000 per ltr 1600 per ltr
Liqueurs and cordials:
2208.70.10 Alcoholic fluids including spirits used as raw materials of Liqueurs and cordials 1200 per ltr 900 per ltr
2208.70.90 Other 2000 per ltr 1600 per ltr
Other:
2208.90.10 Alcoholic fluids including spirits used as raw materials of liquor 1200 per ltr 900 per ltr
2208.90.90 Other 2000 per ltr 1600 per ltr
23.09 Preparations of a kind used in animal feeding.
2309.90.00 Other 10 5
Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted”
24.03
tobacco; tobacco extracts and essences
Other:
2403.99.10 Jarda, Khaini, Snuff, Ghutka and similar preparations containing chewing tobacco 40 30
2403.99.20 Packed chewing tobacco, to be mixed in lime, put up for retail sale 40 30
2403.99.90 Other 40 30
33.05 Preparations for use on the hair.
3305.10.00 Shampoos 20 15
3305.20.00 Preparations for permanent waving or straightening 20 15
3305.30.00 Hair lacqeurs 20 15
NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 39 Page 39You can also read
