The post Nepal’s Economy Added 4Mn Jobs in the Last Decade: WB appeared first on Nepali Sansar.
]]>According to the World Bank’s Nepal Jobs Diagnostic Report, around 3.8 million wage jobs were added to Nepal’s economy between 2008 and 2018.
The share of wage employment in total employment in Nepal increased significantly from 17% in 2008 to 24% in 2018. Simultaneously, the portion of unpaid workers and self-employed farmers declined drastically, especially among men.
Though Nepal had slower GDP growth than many South Asian countries, the nation witnessed faster job growth during the last decade. On average, Nepal’s total employment growth increased by 3% per year. Meanwhile, wage employment increased at 7% per year, compared to 2% of non-wage jobs.
The employment growth can be primarily attributed to the gradual shift in Nepal’s economy from a largely subsistence agricultural sector to modern industry and services.
In the last decade, agriculture’s share of employment and domestic output has declined, while the industry has witnessed steady growth, now accounting for over half of total domestic production.
During the review period, many men have started working in construction, manufacturing, commerce, and transportation. Even though most of these jobs are informal or temporary wage jobs, they are more productive and significantly improved livelihoods than farm work.
Sector | 1998 | 2008 | 2018 |
Agriculture | 76% | 74% | 63% |
Industry | 10% | 11% | 16% |
Services | 14% | 15% | 21% |
Sector | 1998 | 2008 | 2018 |
Agriculture | 38% | 36% | 32% |
Industry | 17% | 16% | 15% |
Services | 45% | 48% | 53% |
In addition to the four million wage jobs in Nepal, around 2.8 million Nepalis were engaged in foreign employment. Most of these foreign migrants are men, 75% are under age 35, and 85% have less than secondary education. However, despite the mostly unskilled nature of the work, the foreign migrants earn much higher wages than those employed at home.
Wage Employment | Male | Female |
Nepal | 38% | 36% |
Abroad | 17% | 16% |
“The shift towards wage employment signals a fundamental change in Nepal’s economic development and is similar to patterns seen worldwide. As economies diversify their production activities and increase scale economies, employment becomes more specialized and more productive, and jobs are increasingly based in firms rather than self-employment and pay more,” said Elizabeth Ruppert Bulmer, the main author of the report.
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]]>The post Nepal Income Tax Slab Rates for FY 2077-78 B.S. (2020-21) appeared first on Nepali Sansar.
]]>Finance Minister Yuba Raj Khatiwada presented the NPR 1.47 billion budget for FY 2077-78 (2020-21), with a slew of measures including sector-wise priorities and policy-level decisions.
Out of the total budget for the new fiscal, NPR 949 billion has been categorized as current expenditure, followed by NPR 353 billion as capital expenditure and NPR 173 billion as the financial provisioning.
With the due emphasis on safe and secure social welfare, the government continued to focus on infrastructure development across multiple areas.
“Enhance the state’s role in public welfare by fulfilling requirements that are considered fundamental rights and basic necessities of the citizen,” reads one of the budget priorities.
Taxation is one critical area that is closely related to the public and the nation’s economic development.
Under the new revenue policy for FY 2020-21, the government proposed to have a future-oriented, transparent and business-friendly taxation system.
The government called for enhanced participation of taxpayers and efficient revenue management through health and friendly tax administration.
For Individuals
Income Level (NPR) | Tax Rate (FY 2020-21) | Taxable Amount |
Up to 4 Lakh | 1% | NPR 4,000 |
Additional 1 Lakh | 10% | NPR 14,000 |
Additional 2 Lakhs | 20% | NPR 54,000 |
Next 1,300,000 | 30% | NPR 444,000 |
Additional Tax: Above 2,000,000 | 36% | NPR 624,000 |
Income Level (NPR) | Tax (FY 2020-21) | Taxable Amount |
Up to 450,000 | 1% | NPR 4,500 |
Additional 100,000 | 10% | NPR 14,500 |
Additional 200,000 | 20% | NPR 54,500 |
Next 1,300,000 | 30% | NPR 429,500 |
Additional Tax: Above 2,000,000 | 36% | NPR 609,500 |
Source of Income | Tax (2020-21) |
Normal transactions | 25% |
Through shipping, air or telecom services, postage, satellite and optical fiber project | 5% |
Shipping, air or telecom services through the territory of Nepal | 2% |
Repatriation of profit by Foreign Permanent Establishment | 5% |
Type of Business | Normal Tax Rate | Rebate | Applicable Tax Rate |
Normal Business | 25% | – | 25% |
Special Industry under section 11 for the whole year | 25% | 20% | 20% |
Constructing and operating ropeway, cable car, railway, tunnel or sky bridge | 25% | 40% | 15% |
Constructing and operating roads, bridges, tunnel, railway, and airports | 25% | 50% | 12.5% |
Having export income from a source in Nepal | 25%*** | 20% | 20% |
Banks and financial institutions | 30%*** | – | 30% |
General Insurance | 30%*** | – | 30% |
Engaged in tobacco, alcohol and related products | 30%*** | – | 30% |
Telecom and Internet Services | 30%*** | – | 30% |
Capital market, securities, and related | 30%*** | – | 30% |
Type of employment provided | Tax Concessions (FY 2020-21) |
Direct employment to 100 or more Nepalese citizens throughout the year | *10 % of AR/NR |
Direct employment to 300 or more Nepalese citizens throughout the year | *20% of AR/NR |
Direct employment to 500 or more Nepalese citizens throughout the year | *25% of AR/NR |
Direct employment to 1,000 or more Nepalese citizens throughout the year | *30% of AR/NR |
Concessions to special industries, by geography | Tax Concessions (FY 2020-21) |
Very underdeveloped areas | 90% of the AR (for 10 yrs from the date of commercial production) |
Undeveloped areas | 80% of the AR (for 10 yrs from the date of commercial production) |
Less developed areas | 70% of the AR (for 10 yrs from the date of commercial production) |
Likewise, there are concessions to industries by investment amount, presence in SEZs, and special areas.
CC | Tax Amount |
Up to 125 cc | NPR 2,800 |
126 cc – 160 cc | NPR 4,500 |
161 cc – 250 cc | NPR 5,500 |
251 cc – 400 cc | NPR 9,000 |
401 cc – 650 cc | NPR 20,000 |
Above 651 cc | NPR 30,000 |
CC | Tax Amount |
350 Watt to 1000 Watt | NPR 1500 |
1001 watt to 1500 watt | NPR 2000 |
1501 watt and higher | NPR 3000 |
CC | Tax Amount |
Up to 1000 cc | NPR 21,000 |
1001 cc – 1500 cc | NPR 23,500 |
1501 cc – 2000 cc | NPR 25,500 |
2001 cc – 2500 cc | NPR 35,500 |
2501 cc – 2900 cc | NPR 41,000 |
Above 2901 cc | NPR 58,500 |
Goods | Excise Duty |
Pan masala | NPR 650/kg |
Flavored areca (supari) with tobacco | NPR 225/kg |
Edible Fruit and Nuts; Peel of Citrus Fruit or Melons | 5% |
Tobacco and Manufactured Tobacco Substitutes | NPR 650/kg |
Hukkah Flavor | NPR 1000/kg |
Essential Oils and Retinoids; Perfumery, Cosmetic or Toilet Preparations-others | 10% |
Wire of iron or non-alloy steel | NPR 1650/MT |
Students going abroad for higher education at 2% of the foreign exchange facility availed from Banking and Financial Institutions (BFIs)
Petrol and diesel imports into Nepal will be subjected to this tax at Rs. 10 per liter for development at the customs point
Petrol and diesel sales within Nepal will be paying these taxes at NPR 1.5 per liter
New connections or ownership transfer on fixed-line services will be charged Rs 500 per connection, and mobile phone recharges will pay an additional 2% of the total value
Licensed casino operators, per license, will pay NPR 40 million per annum and operating modern machine and equipment will pay NPR 10 million per annum
In Conclusion
There are also other tax rates, provisions and concessions under different taxation sections for individuals and entities across varying levels of income.
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]]>The post Local Bodies Vital to Meet SDGs, Says Nepal Planning Commission appeared first on Nepali Sansar.
]]>“Local bodies will have to own SDGs,” noted NPC in its report titled ‘National Report on the Implementation of the 2030 Agenda for Sustainable Development’ released on August 02, 2017. It said a strong partnership between three tiers of government — federal, provincial and local — is extremely necessary to integrate SDGs into local-level structures.”
NPC also urged the Central government to provide sufficient funds at grass-root levels, thus enabling them to come up with various developmental programmes that meet UN-backed goals.
The Commission also pitched on the need for workshop and training sessions stating, “Consultation, workshops and trainings will be required to ensure that SDGs are incorporated in provincial and local plans. It is also equally important to ensure effective participation of women, youth and other marginalized groups in planning and implementation of SDGs at local level.”
SDGs, a follow-up on Millennium Development Goals (MDGs) that expired at the end of 2015, include 17 goals and 169 targets that cover a broad range of issues regarding sustainable development in Nepal. These UN-formed goals will have to be met by 2030.
Ending poverty & hunger, sustainable industrialization, inclusive & sustainable economic growth, employment and overall welfare of the public form major elements of SDGs.
According to the World Bank Council, implementation of SDGs will require at least USD 1.5 trillion a year at the global level.
It is still uncertain on how much the Nepali Government will have to invest on SDGs of Nepal, however, the government’s own financial resources were found insufficient.
“Therefore, Nepal is trying to manage financial resources from a triangular partnership, which includes the public and private sectors as well as development partners, as meeting SDGs is a shared responsibility of the national and international communities,” says the NPC report.
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]]>The post Increased Connectivity Key for Economic Development: PM appeared first on Nepali Sansar.
]]>The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) ministerial meeting was inaugurated in Nepal on Thursday with a focus on concluding key deals related to BIMSTEC member countries.
In his inaugural address, Prime Minister Sher Bahadur Deuba urged BIMSTEC member countries to focus on physical and digital connectivity for achieving economic development.
He called upon BIMSTEC member countries to “give due attention to the needs of its members” towards forming an effective regional grouping for environmentally-sustainable growth.
The Nepal Minister for Foreign Affairs Krishna Bahadur Mahara called for early finalisation of BIMSTEC Master Plan for Connectivity, effective and early operationalization of the BIMSTEC Energy Centre and conclusion of MoU on BIMSTEC Grid Interconnection.
Mahara also emphasized on agreements related to trade facilitation, customs and investment dispute settlement.
Briefing outcomes of the meeting, Shankar Das Bairagi, Secretary at the Ministry of Foreign Affairs (MoFA) informed that the member states sought early finalisation of the agreement on BIMSTEC Free Trade Area (FTA) to boost regional trade, energy and technology.
In the meeting, senior officials pitched on the need to focus on core areas of cooperation, including investment, trade, energy, connectivity and tourism.
Meanwhile, Secretary General of BIMSTEC Sumith Nakandala opined that finalisation of some of the critical agreements would foster opportunities to develop BIMSTEC as a vibrant region.
Nepal is chairing the BIMSTEC summit and is planning to host the same within this year.
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