Budget 2084/84
Government Offers 50% Tax Break on IT Service Exports to Boost Sector
He said the sensitive list of the South Asian Free Trade Agreement (SAFTA) will be reviewed in the changed context.
Dipesh Ghimire
1 min read
Kathmandu — Finance Minister Dr. Swarnim Wagle has announced various provisions for investment promotion and protection through the budget.
Wagle said that to advance the information technology industry as the nation's new economic engine, he has provided a fifty percent tax exemption on income earned from the export of such services.
The Finance Minister said arrangements have been made for a hundred percent exemption, in the computation of taxable income, on the sweat equity received by the workforce employed in the IT sector.
He said an "internal production promotion fee" has been levied on certain goods imported into Nepal.
Wagle said a provision has been made so that no income tax will be levied on the interest earned by wholly owned development finance institutions of friendly nations — established on a not-for-profit basis — from lending in Nepal.
The Finance Minister said those establishing new cinema halls in areas other than metropolitan and sub-metropolitan cities will be given a full income tax exemption for the first ten years.
He said the sensitive list of the South Asian Free Trade Agreement (SAFTA) will be reviewed in the changed context.
Written by
Dipesh Ghimire