Kathmandu. Nepal Bankers’ Association (NBA) has furnished a 13-point suggestion for the upcoming fiscal year. The association has suggested 15 suggestions to Finance Minister Dr Swarnim Wagle in the upcoming budget.
It has suggested that the definition of 15 percent interest rate per annum should be revised as normal interest rate and the ‘bank rate’ fixed by Nepal Rastra Bank from time to time should be considered as normal interest rate.
It has also suggested that banks should consider CSR expenditure as part of business activities and deduct expenses completely for income tax purposes.
Similarly, the limit of tax exemption on donation or gift should be increased from Rs 100,000 to Rs 500,000 (or 5 percent of taxable income, whichever is less).
Likewise, provisions should be made for not to deduct tax on the amount of medical treatment and assistance provided to employees who die or become disabled in the workplace and their families, and to attract the general public to the banking system, the tax on the interest earned from deposits should be reduced from 6 percent to 5 percent.
Similarly, the Inland Revenue Department (IRD) has to reduce the time period for determining the revised tax from the current four years to two years and waive the fees and interest if the taxpayers withdraw the tax cases pending for more than 10 years.
Likewise, the committee has suggested removing the provision of imposing 50 per cent fee on minor errors in the payment of tax and imposing fine only on intentional mistakes.
Likewise, it has been suggested that the minimum limit of personal income tax should be increased to Rs 1 million and the maximum tax rate should be reduced to 25 percent from the maximum 39 percent and the corporate income tax levied on banks and financial institutions should be reduced from 30 percent to 25 percent at par with other businesses.
Similarly, the association has suggested that the provision of mandatory linkage of approved retirement funds operating by banks to social security fund or other funds should be removed.
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