Significantly, the incident is expected to have grave repercussions on the economy of South Asian countries like Nepal.

Nepal is one of the prominent countries highly dependent on remittances from the Gulf.

Nepal annually earns USD 6.5 billion remittances worth 31% of the nation’s GDP from overseas workers predominantly from the Gulf.

Around 1.5 million Nepalis are working in the Gulf countries.

• 600,000 in Qatar
• 350,000 in Saudi Arabia

So, any potential rivalry between Saudi Arabia and Iran will give rise to repercussions on oil prices and eventually affect the Nepali economy.

Earlier, attacks on two oil tankers near Strait of Hormuz has led to the rivalry between Saudi Arabia and Iran. The price of oil has increased by 4% as a result of this incident.

Moreover, the closure of India-Pakistan air space and Saudi-UAE blockade have already affected the air routes from western countries to Nepal which resulted in the decrease of foreign tourist arrivals.

So, any further escalation in the tensions between Gulf countries will have negative implications on Nepali tourism.

Top recipients of remittances in 2018

The post US-Iran Conflict May Disrupt Nepal Economy appeared first on Nepali Sansar.

The Government rolled out the budgetary allocation for FY 2018-19 on May 29, 2018. With the aim to draw more funds to the government treasury, it has introduced a new income tax slab.

The new income tax distribution gives taxpayers between NPR 350,000 – 400,000 bandwidth some relief, with only a 10 percent tax rate. Previously taxpayers between the range had to pay 15 percent tax over their annual incomes.

Latest News:

• Nepal Budget FY 2020-21: Highlights and Key Announcements
• Income Tax Rate in Nepal 2077/78 (2020/21)

Furthermore, the previous 15 and 25 percent income tax rates have been replaced with 10, 20 and 30 percent tax rates, respectively.

The following tables present the income tax distribution as per individual, couples and non-resident Nepalis & couples:

1) Income Tax Rates of Nepal For Resident Persons

2)  Income Tax Rates for Couples

3) Income Tax Rates in Nepal For Non-Resident Persons

4) Income Tax Rates in Nepal For Non-Resident Couples

Additional income tax slabs for various sectors & industries across Nepal:

• The new policy has also increased excise duty on 150-250 cc two-wheelers from 10-70 percent
• Additionally, two-wheelers above 250 cc will have to pay from 20-80 percent
• Four-wheelers above 1,000-1,500 cc have been increased by five percent up to 56 percent
• The government has levied 25 paisa ‘health hazard tax’ on every unit of cigarette, bidi, and cigar
• Similarly, an additional Rs 25 per kg health hazard tax has been introduced for import or home-bound production of chewing tobacco
• Income tax on telecommunications services has been increased by 5 percent to 30 percent
• Special industries including tourist services, electricity production, manufacturing agriculture, mineral, forestry and distribution listed on Nepal Stock Exchange and industries listed as part of 11(3ga) will be entitled to a tax deduction of 15% on the applicable tax rate
• Persons working in remote areas are entitled to a tax deduction of up to a maximum of NPR 5,000 on taxable income

Income Tax Exemptions:

A. General Exemptions

The newly-introduced income tax policy doesn’t include the following:

• Income given and dividends shared by cooperatives in the agro-forestry industry
• Income received by normal persons through agriculture from land within ownership ceiling
• Income given and dividends shared by cooperatives under rural municipalities providing loan and savings services

B. Special Exemptions

• Special industries established with an investment of NPR 1 billion or more are excluded from the tax fold until five years from the date of establishment
• Additionally, if these industries are further excluded from the tax fold if they employ 500 employees or more during the year of establishment
• Special industries with an increased investment of up to NPR 1 billion after establishment are exempted from tax until 5 years from the date of increment of capital
• These industries are further excluded from the tax fold if they employ 500 employees or more during the year of the establishment until 5 years from the date of increment of capital
• Such industries will be exempted from tax if their increment amounts to 25% of installed capacity until five years from the date of capital increment
• Mining Petroleum & Natural Gas industries will be exempted from taxes on commencement of commercial operation by April 12, 2024, for 7 years from the date of commercial operation
• Energy-based industries will be exempted from taxes on commencement of commercial operation by April 12, 2014, for 10 years from the date of commercial operation
• Tourism-related industries with the commencement of operation by April 12, 2014, will be exempted from taxes until five years from the date of commercial operation
• Aviation industry established with an investment of more than NPR 2 billion & conducting international flights will be exempted from tax until five years from the date of commercial operations

The post Nepal Income Tax Slab Rates for FY 2075-76 B.S (2018-19) appeared first on Nepali Sansar.