Kathmandu. Prime Minister Balendra Shah on Tuesday announced to withdraw taxes levied on the education and health sectors in the budget for the current fiscal year 2083÷84. The Prime Minister has said through his status that the tax will not be implemented immediately.

However, the tax rate passed by parliament does not automatically remove the announcement made on social media. According to the legal provision of Nepal, the rate of tax in the Finance Act passed by the Parliament can be changed only after the Government of Nepal makes a formal decision according to the powers given by the same Act.

According to Section 18 of the Finance Act, the government of Nepal can reduce or increase the rate of fees, fees and taxes or give partial and full exemption as per the need. For this, the decision of the Council of Ministers, the necessary administrative process and the publication of the notice in the Nepal Gazette are mandatory.

Clause 18 (6) clearly states that a notice of reduction or increase in the rate of tax has to be published in the Nepal Gazette. According to Article 18 (5), the Ministry of Finance has to submit the details of such decisions to the Federal Parliament every year.