Top3 min readNepal's Gold Imports Plunge Even After Duty Reduction as Buying Power FallsGold Imports Crash in Nepal as Prices Soar Nepal’s Gold Market Hit by Smuggling and High Duties Gold Demand Falls in Nepal Despite Record Prices Nepal’s Gold Crisis: Imports Down 50% Why Nepal’s Gold Imports Are Plummeting Gold Smuggling Surges as Nepal Hikes Duties Nepal Faces Gold Shortage Amid Soaring Prices High Prices, Low Imports: Nepal’s Gold Dilemma Gold Trade Declines in Nepal Due to Tax and Smuggling Nepal’s Gold Market Sinks Under Pressur\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Dipesh Ghimire·26 May, 2025
Top3 min readNepal’s Cash Incentive Export Program Under Fire: Auditor General Flags Legal, Structural, and Transparency FlawsDespite Nepal’s long-standing efforts to promote exports through financial incentives, the nation’s export contribution to total foreign trade remains minimal. A major government initiative to address this imbalance—the Cash Incentive Program for Exporters—is once again under scrutiny for its legal ambiguity, lack of transparency, and questionable effectiveness. The recently published 62nd Report by the Office of the Auditor General (OAG) has highlighted multiple flaws in the implementation of this program, which has been operational since Fiscal Year 2068/69 (2011/12).Dipesh Ghimire·25 May, 2025
Top2 min readTop 10 Countries with Highest Foreign Exchange Reserves in 2025: A Deep DiveTop 10 Countries with Highest Foreign Exchange Reserves in 2025: A Deep Dive According to recent data by currentaffairs.adda247, China continues to dominate the global stage with the highest foreign exchange reserves, followed by Japan and Switzerland. Foreign exchange reserves, which include foreign currencies, gold reserves, SDRs (Special Drawing Rights), and IMF reserve positions, serve as vital financial buffers for countries, helping stabilize currencies, manage inflation, and respond to economic crises.Dipesh Ghimire·25 May, 2025
Finance Bill 20813 min readFinance Bill 2081 Brings Sweeping Changes to Export and Import TariffsThe Finance Bill 2081 has introduced major changes to Nepal’s customs duty structure, aiming to protect domestic industries, discourage the export of raw materials, and control luxury imports. Export duties have been significantly increased on wood and forest products, with some items now facing up to 200% duty, while new charges have been imposed on red lentils. On the import side, duties have risen sharply on strollers, festive items, lighters, vehicles, and household goods, while menstrual hygiene products like tampons and menstrual cups now enjoy reduced import tax, reflecting a public welfare focus. Import tariffs on vehicles are now linked to engine power, with high-powered vehicles facing up to 80% duty. These changes indicate a strategic policy shift towards economic self-reliance, trade deficit control, and industrial promotion.Trading view·24 May, 2025
import duty2 min readMajor Changes in Import Duties Announced in Nepal’s Finance Bill 2081The Finance Bill 2081 has introduced a series of changes to Nepal's import duty structure, significantly altering the cost dynamics of various goods. Duties on essential food items like potatoes have been increased from 10% to 15%, signaling a push to encourage domestic agricultural production. In contrast, the duty on cashew nuts with shells has been reduced from 15% to 10%, potentially to benefit food processors and importers. A sharp increase is seen in the import duty for spice mixtures (MASALA), which jumped from 20% to 30%, likely to promote locally blended spices. In the medical sector, import duty on urine bags has been removed entirely (previously 5%), while medical gloves saw a jump from 5% to 15%. Meanwhile, paper products used in packaging and printing have become more expensive, with duty raised from 15% to 20%. On the flip side, rubber thread and cord now face reduced duty, dropping from 15% to 5%, suggesting a boost to the textile or elastic product manufacturing sector. Overall, the revised duties reflect a strategic policy shift toward import substitution and domestic industry promotion.Trading view·24 May, 2025
Excise Duty2 min readMajor Adjustments on Electric Vehicles, Tobacco, and Consumer GoodsThe Government of Nepal has revised excise duties for Fiscal Year 2081/82, impacting electric vehicles, tobacco, alcoholic drinks, and several consumer goods. EVs now face updated duty rates based on battery capacity, with new 5% duty on transport EVs and four-wheelers. Excise duty on e-cigarettes is fixed at 40% or Rs. 475/kg, while higher rates apply to alcohol and tobacco-based products. New excise duties are imposed on laptops, hydraulic brake fluids, cement supplements, and eco-friendly utensils. Ice cream excise is raised from 20% to 30%. Excise duty has been removed from tempered and laminated safety glass used in vehicles and aircraft. These reforms aim to boost revenue, promote clean energy, and enhance public health.Trading view·24 May, 2025
Value Added Tax (VAT)2 min readValue Added Tax Thresholds Revised Amid Steady VAT Rate in NepalThe Government of Nepal has kept the Value Added Tax (VAT) rate unchanged at 13% for the fiscal year 2081/82, maintaining consistency in its indirect tax structure. However, it has revised the VAT registration thresholds across various business categories. Businesses dealing exclusively in goods will still require VAT registration upon exceeding NPR 5 million in annual turnover. Meanwhile, the threshold for service-only businesses and those dealing in both goods and services has been updated to NPR 3 million. For nonresident persons, the registration threshold has also been raised from NPR 2 million to NPR 3 million, making compliance easier for small foreign operators. To strengthen enforcement, the Inland Revenue Department has announced that businesses failing to submit tax returns within four months after the due date may face restrictions, including a halt on import and export activities. While the exact interpretation of thresholds for mixed transactions is pending formal regulation, the practical threshold is assumed to be NPR 3 million. These adjustments reflect a move to broaden the VAT base while keeping the system simple and enforceable.Trading view·24 May, 2025
Government of Nepal 2 min readTax Rates for Public Vehicle Businesses Unchanged in FY 2081/82The Government of Nepal has maintained the same presumptive income tax rates for public vehicle operators in FY 2081/82 as in FY 2080/81. These fixed rates apply to resident natural persons involved in the business of public transportation. The tax amount varies by vehicle type and engine capacity. For example, cars and microbuses up to 1300cc are taxed Rs. 5,500, while large vehicles like trucks, oil tankers, and heavy equipment face up to Rs. 15,500. Electric vehicles (EVs) have a separate slab ranging from Rs. 3,000 to Rs. 7,500 based on kilowatt output. This unchanged structure provides clarity and predictability for small transport operators while encouraging the shift toward electric vehicles. The rates are clearly categorized for traditional fuel and electric segments, showing Nepal's balanced approach to economic stability and green mobility goals.Trading view·24 May, 2025
Corporate Tax 2 min readCorporate Tax Rates and Cooperative Tax Reforms for FY 2081/82 in NepalThe Government of Nepal has released the official tax rates for corporate and cooperative sectors for Fiscal Year 2081/82. Key sectors such as banks, financial institutions, petroleum, insurance, and securities businesses face a higher corporate tax rate of 30%. The normal corporate tax rate remains at 25%. Non-resident entities offering air and water transport or telecom services in Nepal are taxed at 5% or 2% depending on the point of departure. Cooperative tax rates remain unchanged from FY 2080/81, with Savings & Credit Co-operatives (SACCOS) taxed at 20% in metropolitan cities, 15% in sub-metropolitan areas, and 10% in other regions. Non-exempt cooperatives face rates of 10%, 7%, and 5% based on their location. This structured tax system reflects Nepal’s focus on equitable taxation, encouraging local cooperatives while ensuring high-revenue sectors contribute proportionally. The updated tax slabs are vital for businesses, investors, and tax planners aiming for compliance in FY 2081/82.Trading view·24 May, 2025
Nepal income tax 2081/823 min readNepal Income Tax Slab Rates for FY 2081/82 Explained in DetailThe Government of Nepal has retained the same income tax slab rates for Fiscal Year 2081/82 as the previous year. Resident individuals are taxed progressively from 1% up to 39%, while couples enjoy a higher initial exemption up to NPR 6,00,000. Non-resident persons are taxed at flat rates based on transaction type, ranging from 2% to 25%. The unchanged tax structure ensures stability, predictability, and simplicity in Nepal’s income tax regime, promoting effective financial planning for individuals, couples, and international entities.Trading view·24 May, 2025