Kathmandu. The new fiscal year 2083/84 has begun from today. Along with this, various tax and policy provisions made through the budget and Finance Act brought by the government have been implemented.

All the taxes and fees levied by the government have come into effect from today.

The government has brought some items that were previously exempted from tax into the tax net with the aim of increasing internal revenue. The new tax and duties have been imposed on household electricity, ride-sharing, private education, private health service, luxury hotels, imported liquor and gold and silver jewelry.

According to the Nepal Electricity Authority (NEA), domestic consumers consuming more than 50 units of electricity will have to pay 5 percent Value Added Tax (VAT) and 13 percent VAT for commercial consumers. NEA has already modified the required software and implemented a new provision in the bill to be issued from today.

Similarly, 5 percent VAT is applicable on ride-sharing services like Pathao, Endriver, Yango, among others. According to the Finance Act, 2083 BS, 3 percent education parity fee has been imposed on the fees of private educational institutions and 3 percent health parity fee in the services of private health institutions.

Similarly, 2 percent luxury duty will be imposed on five-star or above hotels, luxury resorts and imported liquor. A 0.5 percent skill promotion fee has been imposed on the purchase of gold, silver and jewelry, while the annual royalty of mini casinos has been increased from Rs 15 million to Rs 30 million.

Areas subsidized by the government

The government has also made arrangements for relief in some areas for this fiscal year. The government has increased the annual tax limit for personal income tax from Rs 5 lakh to Rs 1 million. The maximum personal income tax rate has also been reduced from 39 per cent to 29 per cent.

Similarly, the government has reduced the customs rate from 11 levels to seven levels. Similarly, the government has reduced customs duty on 273 types of industrial raw materials. Excise duty has been removed from 360 items. However, excise duty has been increased on alcohol, cigarettes, tobacco, junk food, juice and some luxury items. This tax has been implemented from May 29.

The government has also proposed to implement integrated green tax (green tax) and provide up to 40 percent incentive subsidy to farmers investing up to Rs 20 million.