Heavy discount on income tax for small businesses
KATHMANDU, MAY 28
Announcing the federal price range for fiscal 12 months 2020-21, Finance Minister Yubaraj Khatiwada has supplied heavy revenue tax exemption to small and cottage industrialists.
The authorities has exempted revenue tax of as much as 75 per cent for companies with annual transactions of as much as Rs two million. Likewise, for companies whose annual transaction is between Rs two million and Rs 5 million, the federal government has exempted 50 per cent on revenue tax, whereas 25 per cent exemption has been granted for companies with annual transaction amounting to Rs 5 million to Rs 10 million.
Meanwhile, industries established in industrial areas will obtain 25 per cent low cost on revenue tax for 5 years, whereas all of the cooperatives being operated in distant areas don’t have to pay any revenue tax to the federal government.
Likewise, revenue tax exemption interval for small companies has been prolonged by two years to seven years, whereas the exemption interval for women-run enterprises has been prolonged by three years to 10 years. The authorities has slashed customs tax on import of equipment and uncooked supplies required for small and cottage industries, agriculture, livestock, veterinary and masks manufacturing. Similarly, customs tax on seeds of paddy, maize, wheat and greens has additionally been decreased.
“The authorities has determined to offer 20 per cent exemption on revenue tax of the present fiscal 12 months for airline corporations, transportation corporations, inns, journey and trekking companies,” the minister mentioned, “Infrastructure improvement tax on aviation turbine gasoline has additionally been eliminated, whereas the federal government has additionally eliminated all airport service prices for plane throughout the lockdown interval and flight restrictions.”
The authorities has additionally exempted worth added tax on import of uncooked supplies required for producing medicines in addition to for uncooked supplies of ayurvedic medicines.
However, the federal government has elevated customs tax on petrol, diesel, gold, alcohol and cigarettes. The authorities has elevated customs tax on imported alcohol by Rs 300 per litre, whereas Rs 2,000 has been elevated on 10 grams of gold import.
Meanwhile, the federal government has determined to implement street upkeep cost on electrical automobiles value Rs 12,000.
The authorities has additionally elevated customs tax on spare components of vehicles by 5 per cent.
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