NEPAL BUDGET 2076/77 (2019/20) - NBSM · NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 7...

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NEPAL BUDGET 2076/77 (2019/20)Highlights from Tax Perspective

Table of Content

Budget Objectives 4Budget Summary 5-10Taxation General 11Income Tax 12-25Value Added Tax 26-29Excise Duty 30-32Customs Duty 23-49

Government's Long Term Objective:

Prosperous Nepal, Happy Nepalese

;Da[4 g]kfn, ;'vL g]kfnL

OBJECTIVES OF BUDGET 2076/77

• Qualitative reform in standard of living of citizens by fulfilling the fundamental necessities and fundamental rights of general people.

• Rapid economic development with social justice by optimum utilization and equitable distribution of available means, resources, opportunities and potentials.

• Transform into middle-income nation by 2030 A.D. by developing economic, physical and social infrastructure and lay down the foundation for prosperous and socialism-oriented economy.

PRIORITIESS OF BUDGET 2076/77• Construction of Public welfare state administration with the

eradication of extreme poverty, rapid upliftment of backward area, category and community along with the extension of social security.

• Construction of national capital, creation of employment and increase in income through enhancement of productive capacity, transformation relating to production and cooperation of public, private and cooperative sector.

• Development and construction of physical structure of national strategic importance, implementation of incomplete projects and development of financial infrastructure like qualitative education, health, drinking water, social and agriculture industry, tourism.

• Promotion of governance realized to citizen through rule of law, effectiveness of public service, accountability and public participation in development.

• Cooperation between province and local level, Cooperative and private sector for maximum utilization of resources, opportunity and responsibility.

7.00% Previous Year GDP Growth Estimate

8.50% GDP Growth Projection this Year

4.50% Previous Year Inflation Estimate

6.00% Inflation Projection this Year

NBSM | Nepal Budget Highlights | 2074/75 (2017-18) Page 7

BUDGET SUMMARY

Budget Allocation

Sources Of Budget Financing

Total Budget Size Amount (Billions) Percentage

Current Expenditure 957.10 62.43%

Capital Expenditure 408.01 26.62%

Financial Management 167.86 10.95%

Total Budget Allocated 1,532.97 100.00%

62%27%

11%

Allocation of Budget

Current Expenditure

Capital Expenditure

Financial Management

Revenue Sources Amount in Billions Percentage

Tax revenue 981.14 64.00%

Foreign Grant 58.00 3.78%

Foreign Debt 298.83 19.49%

Internal Debt 195.00 12.72%

Total 1,532.97 100.00%

981.

14

58.0

0 298.

83

195.

00

1,53

2.97

64.0

0%

3.78

%

19.4

9%

12.7

2%

100.

00%

TAX REVENUE

FOREIGN GRANT

FOREIGN DEBT

INTERNAL DEBT

TOTAL

REVENUE SOURCESAmount in Billions Percentage


BUDGET SUMMARY Major Highlights of Budget 2076/77

• Allocation of Budget of Rs. 163 billion to the education sector with the objective to receivethe full literacy rate in 70 districts in the upcoming financial year and bring one window policyfor operation off all universities.

• Primary health service to be made free of cost from all local level medical service providerinstitutions and all Nepalese to be brought under health insurance net with the allocation ofRs. 68.78 billion in health sector.

• Rs. 5.1 billion has been allocated to The Prime Minister Employment Program to createmore employment opportunities in the economy and thereby reduce the foreign employmentrate.

• The government has increased the elderly allowance from Rs. 2000 to Rs. 3000 per monthfor citizens of 70 years and above. Also the government will bear the cost of healthinsurance premium for insurance coverage upto Rs. 100 thousand for all citizens of overseventy years of age and person below poverty line.

• Rs. 34.80 billion has been allocated to the agriculture sector with 8.10 billion to PrimeMinister Agriculture Program to encourage the people returned from foreign employment toenter into organic agriculture business.

• Land Act to be introduced for ensuring the sustainable utilization of the land and thedigitalization of all land ownership papers and blueprints within 2 years.

• The Scope of Cooperatives to be extended to tourism, industry, energy, education andhealth sectors along with agriculture and cooperative credit information centre and creditand deposit fund of the cooperative to be established.

• Visit Nepal 2020 campaign will be celebrated and promoted world wide..


BUDGET SUMMARYMajor Highlights of Budget 2076/77 Continued……

• Local products will be promoted and prioritized to make the country selfdependent in 2 dozens industrial products.

• Closed and Sick industries will be revived by the help of private sector andcooperatives and made in Nepal products will be made mandatory for gift-giving purpose at International Seminars and Foreign Visits.

• Challenge fund will be set up for providing an initial capital for operating newand small industry and Mining sector will be explored through Public PrivateParticipation.

• Dry port to be established in Chobhar and Rasuwagadhi and the commercialtrade with the third countries shall be commenced through the use of Port ofChina.

• Export of Organic tea to be promoted and in order to ensure the domesticmarket, auction house shall be established.

• Rs. 83.49 billion to be allocated to the Hydro electricity sector with theobjective of establishing at least two big hydro power in all provinces andproducing and adding 1000 MW in national grid in upcoming fiscal year.

• PPP (Public Private Partnership) module will be explored in HugeHydroelectricity Projects implementation and local government to get budgetto produce electricity from waste and garbage.

• Rs. 163.52 billion has been allocated to the roadway and railwaydevelopment with Rs. 19.18 billion being allocated to the express East WestHighway and Rs.6.27 billion to the Nagdhunga surung marga.


BUDGET SUMMARYMajor Highlights of Budget 2076/77 Continued……• East-West and North-South railway to be developed and Rs 7.7 billion to

be allocated in order to explore PPP model for monorail and metro inthe valley.

• Rs. 5.7 billion has been allocated for joining the centre of local level toprovince capital through black topped road and the budget of LocalInfrastructure Development Partnership Program to be increased from40 million to 60 million.

• Digital Nepal framework to be promoted and will be brought intooperation and in upcoming 5 years all the government transactions willbe digitalized.

• Cyber security law will be made more strict and Nepal’s own satellite tobe established.

• Arrangement for depositing the gold and silver in the BFIs will be madeand national payment gateway to be promoted and hence cashtransactions to be reduced.

• All kinds of securities transaction in secondary market shall be madedigital to enable the NRN to invest in securities market as well and PANsystem to be implemented in share market.

• Government staff salary for gazetted officers and non-gazetted officer tobe increased by 18% and 20% respectively and all other incentives andfacilities are kept unchanged.

• 15th year plan for sustainable development will be implemented fromShrawan 2076


TAXATIONGeneral : Health, Education, Infrastructure, Telecommunication Casino• Government has introduced HEALTH RISK TAX which will be applicable to the entities involved on

the production/import of Cigarette, Cigar, Bidi, Khaini, Surti, Pan Masala, Gutkha.Tax Applicable: In case of Cigarette, Cigar, Bidi : NPR 25 Paisa Per Stick (Khilli)In case of Khaini, Surti, Pan Masala, Gutkha : NPR 25 Rupees Per Kg

To General Casino 40 Million Per annumTo Casino using Modern MachineEquipment

10 Million Per annum

• Education tax shall be levied at 2% while exchanging foreign currency aseducation fee by the students going abroad for studies.

• Infrastructure tax shall be levied at the rate of Rs. 5 per litre on import of Airfuel, Petrol and diesel at customs point.

• Telecommunication Service Charge to be levied at 13% which will beimposed by telecom industries on the telecommunication charges made tothe customer.

• Casino Royalty shall be charged as :


INCOME TAX

General : Exemptions to the Person who want to Regularize their Tax Compliances

• Special Provision for waiver of Tax, Fines, Penalties andInterest upto Fiscal Year 2075/76 for business started withinnovative thinking, Skill , entrepreneurship andtechnology : Any person or institution involved in thebusiness with innovative thinking, skill, entrepreneurship andtechnology who have not come under the purview of tax, iftakes PAN and gets registered to VAT within Poush End 2076,then all the tax, fine, additional amount, fee and interest priorto FY 2075/76 shall be exempted.

General : Provisions relating to Social Security Fund

• In case of single natural person having annual income up toRs. 400,000 and couple having annual income up to Rs.450,000 from employment as per Annexure 1 of Income Tax2058, the tax shall be levied at the rate of 1%.

• Such amount shall have to be deposited into the Separaterevenue account.

• However the tax under this section shall not be levied onpension income and income of natural person who contributesto contribution based pension fund.

Provision of Revised Return• Any error on tax return submitted can be rectified by

submitting revised tax return within 30 days from the dateof submission of erroneous tax return.


INCOME TAX

PERSONAL TAX

Particulars FY 2076/77 FY 2075/76Rs. Tax Rate Rs. Tax Rate

Assessed as IndividualFirst Tax slab 4,00,000 1% First Tax Slab 3,50,000 1%

Next 1,00,000 10% Next 1,00,000 10%Next 2,00,000 20% Next 200,000 20%Next 13,00,000 30% Next 13,50,000 30%Balance Exceeding 20,00,000 36% Balance Exceeding 20,00,000 36%

Assessed as CoupleFirst Tax Slab 4,50,000 1% First Tax Slab 4,00,000 1%

Next 1,00,000 10% Next 1,00,000 10%Next 2,00,000 20% Next 200,000 20%Next 12,50,000 30% Next 13,00,000 30%Balance Exceeding 20,00,000 36% Balance Exceeding 20,00,000 36%

For Resident PersonThere has been change in the Tax slab applicable to the Resident Person from the Budget this year. Details of the applicable tax rates have been providedbelow.

S. N. Nature of transaction FY 2076/77 FY 2075/761. Income earned from normal transactions. 25% flat rate 25% flat ratea. Income earned from providing shipping, air transport or telecommunication

services, postage, satellite, optical fiber project.5% 5%

b. Income earned providing shipping, air transport of telecommunication servicesthrough the territory of Nepal.

2% 2%

c. Repatriation by Foreign Permanent Establishment. 5% 5%

For Non-Resident Person


INCOME TAXNotes:

1. Natural person working at remote areas are entitled to get deduction from taxable income to a maximum of Rs. 50000.

2. Natural person with pension income shall not be entitled to Social Security Tax.

3. Incapacitated natural person shall be entitled to get deduction from taxable income an additional 50% of amount prescribed under first tax slab.

4. A Resident natural person who has procured life insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 25000 whichever is less from gross taxable income.

5. A Resident natural person who has procured Health Insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 20000 whichever is less from gross taxable income.

6. In case of the employee employed at the foreign diplomatic mission of Nepal only 25% of the foreign allowances are to be included in the income from salary.

7. In case of the employee posted outside Nepal is getting foreign allowance will get 75% rebate of such allowance.

8. In case of the female employee whose taxable income is only from employment than 10% rebate is allowed on tax liability.


INCOME TAX

Section Amended Provision Existing Provision

11 (2) & Sch - 1

Tax rate applicable for cooperatives involved in financial transactions as follows:Cooperatives operating in municipal areas: 5%Cooperatives operating in metropolitan and sub-metropolitan areas: 10%However the tax for cooperatives not involved in financial transaction and not exempted u/s 11 (2) shall be levied at 20%.

Tax rate applicable for cooperatives registered under Cooperatives Act excluding those operating in rural municipalities and involved in agriculture sector : 20%

11 (2)(Kha)

Following tax concession will be provided on income from special industries operating fully in any financial year: Resident natural person falls under tax slab of 30% or more: 1/3rd concession on taxIn case of entity: 20% concession on taxNote: above person can also avail other tax concession under section 11.

New Provision introduced by Finance Bill 2076

11 (3)(Nga)

Following tax concession will be provided on income generated on export which source is in Nepal: 25% tax concession for resident natural person falls under tax slab of 20%.50% tax concession for resident natural person falls under tax slab of 30%.20% tax concession for entity.50% tax tax concession on income generated from export of goods by production oriented industries after deducting above tax concession.

Tax concession of 25% shall be provided on income generated from export of goods by production oriented industries.

11(3)(Cha)

Following tax concession will be provided on income generated by entity from following activities:20% tax concession on operation of tram & trolley bus.20% tax concession on construction & operation of ropeway, cable car, railway, tunnel, overhead bridge.40% tax concession on construction and operation of airport.52% tax concession on construction & operation of road, bridge, & tunnel.52% tax concession on investment & operation of tram & trolley bus.

40% tax concession shall be provided on applicable tax rate on income generated from construction and operation of road, bridge, airport, and tunnel or investment and operation of tram & trolley bus.

11(3)(Tha)20% tax concession on taxable income generated by any entity from construction, operation and handover of public physical infrastructure project and construction of power house, production and transmission of electricity.


21(1)(Gha)(1) The remuneration and wages paid to the employees and workers not having Permanent Account Number (PAN) shall be disallowed for tax purpose. New Provision introduced by Finance Bill 2076

21(1)(Gha)(2) The expense relating to the invoice not containing PAN exceeding invoice value of Rs. 1000 shall be disallowed for Tax purpose. New Provision introduced by Finance Bill 2076

47(Ka) (6) The letter of intent for the merger shall be submitted to Inland Revenue Department until 2077 Ashad end. The letter of intent for the merger shall be submitted to Inland Revenue Department until 2076 Ashad end

The major changes brought forward by the Finance bill 2076 relating to Income Tax:


INCOME TAX


47 (Ka) (7) The merger process of entities submitting letter of intent shall be completed by 2078 Ashad End. The merger process of entities submitting letter of intent shall be completed by 2077 Ashad End.

78 (4A) Person doing the transactions by taking PAN shall mandatorily update the information regarding their registration under biometric system within prescribed time frame . New Provision introduced by Finance Bill 2076

94 (2) In cases where the amount of instalment to be paid as instalment tax is less than Rs.7,500, the person need not file the estimated tax return.

In cases where the amount of instalment to be paid as instalment tax is less than Rs.5000, the person need not file the estimated tax return.

95(Ka) (2)

In case of listed securities, the person dealing in securities exchange (shall collect advance tax) at the rate 5% of gain in case of a resident natural person and 10% of gain in case of resident entity and 25% of gain in case of others.Further while calculating gain, Weighted average cost shall be taken into consideration.

in case of listed securities, the person dealing in securities exchange (shall collect advance tax) at the rate 7.5% of gain in case of a resident natural person and 10% of gain in case of resident entity and 25% of gain in case of others

95(Ka)(6) In case of disposal of land and building other than NBCA of a natural person, the rate of advance tax collection is 1.5%.

In case of disposal of land and building other than NBCA of a natural person, the rate of advance tax collection is 10%.

95 (Ka)(7)

The Custom Frontier shall collect advance tax at 5% of value determined for customs purpose, in case of import of following goods:a. He buffalo, buffalo, he goat, sheep, chyangra falling under part 1 of HCS.b. Love, frozen or fresh fish under part 3 of HCS.c. Fresh flowers under part 6 of HCS.d. Fresh Vegetables, potato, onion, dried vegetables, garlic, baby corn under part 7 of HCS.e. Fresh fruits under part 8 of HCS. Further the custom Frontier shall collect advance tax at 2.5% of value determined for customs purpose, in case of import of following goods::a. Meat under part 2 of HCS.b. Milk products, egg, honey under part 4 of HCS.c. Millet, buckwheat, junelo rice, broken rice under part 10 of HCS.d. While Flour, Flour (Aata), Pitho under part 11 of HCS.e. Herbs , sugarcane under part 12 of HCSf. Vegetation related production under part 14 of HCS.

The Custom Frontier shall collect advance tax at 5% of value determined for customs purpose, in case of import of following goods:a. He buffalo, buffalo, he goat, sheep, chyangra falling

under part 1 of HCS.b. Love, frozen or fresh fish under part 3 of HCS.c. Fresh flowers under part 6 of HCS.d. Fresh Vegetables, potato, onion under part 7 of HCS.e. Fresh fruits under part 8 of HCS.

96(6) Any error on tax return submitted can be rectified by submitting revised tax return within 30 days from the date of submission of erroneous tax return. New Provision introduced by Finance Bill 2076

The major changes brought forward by the Finance bill 2076 relating to Income Tax contd..:


INCOME TAX


110(Ga) If it has been proved that beneficial owner is other than business registering person, the liability to payment the tax of such business shall be of beneficial owner.


115(6) The taxpayer who makes an application to Administrative appeal has to pay the full amount of undisputed tax and 1/4th of the disputed tax.

The taxpayer who makes an application to Administrative appeal has to pay the full amount of undisputed tax and 1/3rd of the disputed tax.

117(1)(Ka) In case income details of any income year are not submitted pursuant to Sub-section (1) of Section 95, fees at the rate of Rs. 5,000 for each detail shall be imposed.

In case income details of any income year are not submitted pursuant to Sub-section (1) of Section 95, fees at the rate of Rs. 2,000 for each detail shall be imposed.

4(4)

Presumptive tax rate:For natural person doing business in Metropolitan City & Sub Metropolitan city: 7500For natural person doing business in Municipality: 4000For natural person doing business in other areas: 2500

Presumptive tax rate:For natural person doing business in Metropolitan City & Sub Metropolitan city: 5000For natural person doing business in Municipality: 2500For natural person doing business in other areas: 1500

The major changes brought forward by the Finance bill 2076 relating to Income Tax cond..:


INCOME TAX

Section 4 (4A)

The Criteria for assumption of presumptive Taxpayer under this section includes:

Resident Natural Person who fulfills all the following conditions:a) The person generates income only from business having source in Nepalb) The person does not claim Medical Tax Creditc) The person does not claim advance tax arising out of tax withheld by withholding agentd) The transaction of the business exceeds Rs. 20 Lakhs and is less than Rs. 50 Lakhse) The person is not registered for VAT purpose, andf) The person does not have income related to consultancy and expert professional services including that provided by doctor, engineer, auditor,

lawyer, sportsman, artist, and consultant.

The tax rate applicable shall be as follows:

Particulars Amended provision Existing provision

For person dealing in cigarette, gas, etc. in which the person makes sales by adding 3% commission or profit 0.25% of transaction amount 0.75% of transaction amount.

For persons dealing goods besides that specified above 0.75% of transaction amount. 0.25% of transaction amount.

Persons dealing in service business 2% of transaction amount. 2% of transaction amount.

The major changes brought forward by the Finance bill 2076 relating to Income Tax are :


INCOME TAXThe existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:Tax Rates:

Section Nature of entity FY 2076/77 FY 2075/76Company/Firm /IndustryDomestic incomeNormal Rate (NR) 25% 25%Other

11(3) (Ka)

Providing direct employment to Nepalese citizens by special industries and informationtechnology industries for whole year:

For 100 or more Nepali National 90% of Normal Rate 90% of Normal Rate




For 100 Nepalese including 33% women, dalit & disabled by Special industries. Additional 10% rebate Additional 10% rebate

11 (3) Ga and 11(3Ta)

a. Special Industries established with more than one billion capital and provide directemployment more than 500 peoples for a complete year or,

b. New Industry related to Tourism and Aviation with more than two billion capital or,

c. Running industry with substantial expansion (at least 25% of existing capacity) withcapital not less than one billion and provide direct employment more than 500peoples for complete year.

100% Income is exempt from tax for the first 5 years from the dateof commencement of production and 50% of income is exemptfrom tax for next 3 years.

11 (3) Kha

Industries establishment in very undeveloped areas (sec 11.3.b) as defined in IndustrialEnterprise Act.

10% of the normal rate (for 10 years from the year ofestablishment)

Industries establishment in undeveloped areas (sec11.3.b) as defined in IndustrialEnterprise Act

20% of the normal rate (for 10 years from the year ofestablishment)


INCOME TAX

11 (3) Kha Established in underdeveloped areas (Sec 11.3.b). as defined in IndustrialEnterprise Act 30% of the normal rate (for 10yrs from the year of establishment)

11 (3Ka) Industry established in 'Special Economic Zone' recognized in mountain areas orhill areas by the GON Up to 10 years 100% exempt and 50% rebate in subsequent years

11 (3Ka) Industry established in 'Special Economic Zone' other than above locations 100% exempt up to first five years and 50% rebate in subsequent years

11 (3Ka) Dividend distributed by the industry established in the special economic zone Dividend Tax is 100% exempt up to first five years and 50% rebate in subsequent 3 years

11 (3Ka)Income derived by the foreign investors from investment in 'Special EconomicZone'( source of income use of foreign technology, management service fee androyalty)

50% of applicable tax rate

11 (3Tha)Dividend Distribution Tax in case Special Industry, Industry based in Agricultureand Tourism sector capitalizing its profit for the purpose of expansion of capacity ofindustry.

100% exempt

11 (3Ga) Import income of information technology industries as IT Park as declared bygovernment. 50% of normal tax rates

11 (3Gha)

Institution having licensed to generate, transmit, and distribute electricity shall beallowed if the commercial activities started in terms of electricity generation ,generation and transmission, generation and distribution or generation,transmission distribution before B.S 2080 Chaitra and these exemption shall alsobe available for solar, wind and other alternative energy companies.

100% exempt up to ten years and 50% rebate on subsequent 5years.

11(3Chha)

Income manufacturing industry, tourism service industry hydropower generation,distribution and transmission industry listed in the security exchange (i.e. capitalmarket)

85% of applicable tax rate

Section Nature of entity Applicable for both FY 2076/77 and FY2075/76

Tax Rates:The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:


INCOME TAX

Section Nature of Entity Applicable for both FY 2076/77 and FY2075/76

11 (3Ja) Industry established in least developed area producingbrandy, wine, cider from fruits 60% of applicable tax rate up to 10 years

11(3Kha) Income Generated by Minerals, Petroleum & Natural GasIndustries by Exploration and Extraction

100% exemption for first 7 years for next 3 years 50% exemption from Income Tax if CommercialProduction is started by Chaitra 2080

11 (3Jha) Royalty from export of Intellectual Asset by a person 75% of applicable tax rate

11 (3Yna) Income from sale by intellectual asset by a person through transfer 50% of applicable tax rate

Sch 1(13) Presumptive tax in case a Resident Natural Person isengaged in business of Public Vehicles

Rate as per nature of vehicles1. Car, Jeep, Van and Micro Bus

Up to 1300CC Rs. 4,000From 1301 CC to 2000 CC Rs. 4,500From 2001 CC to 2900 CC Rs. 5,000From 2901 CC to 4000 CC Rs. 6,000Above 4001 CC Rs. 7,000

2. Mini Truck, Mini Bus & Water tanker Rs. 6,0003. Mini Tripper Rs. 7,0004. Truck & Bus Rs. 8,000

5. Dozers, Excavator, Loader, Roller, Craneand like such machinery equipment Rs.12,000

6. Oil tanker, Gas Bullet and tripper Rs.12,0007. Tractor Rs. 2,000 8. Power tiller Rs. 1,5009. Auto Rickshaw, Three wheeler, Tempo Rs. 2,000



INCOME TAX

Section Nature of Entity Applicable for both FY 2076/77 and FY2075/76

11 (3Da) Pvt Company having Paid of Capital of NPR 500 Million if converted inPublic Company & Transact except for sec 12 of Company Act 10% deduction in Income Tax Rate for the Period of 3 years

11 (3Dha) Domestic Tea Production & Processing Industries, Dairy Industries & TextileIndustries 50% of applicable tax rate

11 (3Ana) Health Services Provided by the Community 20% Reduction of Income Tax Act

11 (3 Ta) Micro Industries (As defined under Industrial Enterprises Act, 2073) 100% tax exemption for the first 5 years from operation. If such Industries are run by Women, 100% exemption for further 2 years



INCOME TAX

Sch 1 Sec 2(2)

Bank and Financial InstitutionCommercial banks, Development Banks and Finance companies 30% 30%Insurance businessGeneral insurance business 30% 30%Petroleum IndustriesEntity engaged in Petroleum business under Nepal Petroleum Act , 2010 30% 30%Merchant Banks, Telecommunication and Internet Services Industry, Money Transfer CapitalMarket, Commodity Future Market, Securities Brokers and Companies involved in securitiesbusiness

30% 30%

Entities transacting in petroleum under pertroleum Act 2040 except for the cases set forthu/s 11 (3 Kha)

100% exempted up to seven years and 50% rebate onsubsequent 3 years

Sch 2 Sec 6

Non resident carrying on air and water transport and Telecommunication services in Nepal :a. If the goods and Passengers embarking from Nepalb. If a person books ticket from Nepal but the departure is from any foreign country

5%2%

5%2%

Section Nature of entity FY 2076/77 FY 2075/76

Tax Rates for special entities:

The existing provisions of Income Tax relevant to business entity not amended by Finance Bill 2076 are:


INCOME TAXWITHHOLDING TAXES/(TAX DEDUCTED AT SOURCE)Section Nature of transaction FY 2076/77 FY 2075/76

A. Interest income from deposit up to Rs 10000 under 'Micro Finance Program', 'Rural DevelopmentBank', 'Postal Saving Bank' & Co-Operative (u/s-11(2ka) in Village Municipality areas Exempt from tax Exempt from tax

B.Wind fall gainsWind fall gains from Literature, Arts, Culture, Sports, Journalism, Science & Technology and PublicAdministration amount received up to 5 lacs

25%Nil

25%Nil

C. Payment of rent by resident person having source in NepalHowever no TDS on payment of rent to natural person. 10% 10%

D. Profit and Gain from Transaction of commodity future market 10% 10%

E.

Profit and Gain from Disposal of Shares:In case of Individual- Listed Shares- Non Listed SharesResident Entity- Listed Shares- Non Listed SharesOthers- Listed Shares- Non Listed Shares

5%10%

10%15%

25%25%

7.5%10%

10%15%

25%25%

F.On dividend paid by the resident entity.- To Resident Person- To Non Resident Person

5% for both 5% for both

G. On payment of gain in investment insurance 5% 5%H. On payment of gain from unapproved retirement fund 5% 5%

I. On payment of interest or similar type having source in Nepal to natural person [ not involved in anybusiness activity by Resident Bank, financial institutions or debenture issuing entity, or listed company 5% 5%

J. Payment made by natural person relating to business or other payments relating to house rental excepthouse rent No TDS No TDS

K. Payment for articles published in newspaper No TDS No TDS


INCOME TAX

Section Nature of transaction FY 2076/77 FY 2075/76L. Interest payment to Resident bank, other financial institutions No TDS No TDSM. Interregional interchange fee paid to credit card issuing bank No TDS No TDSN. Interest or fees paid by Government of Nepal under bilateral agreement No TDS No TDSO. On payment of general insurance premium to resident insurance company No TDS No TDSP. On payment of premium to non-resident insurance company 1.5% 1.5%Q. Contract payment exceeding Rs 50000 for a single contract within 10 days. 1.5% 1.5%R. Interest & Dividend paid to Mutual Fund No TDS No TDS

S.Payment of consultancy fee:- to resident person against VAT invoice- to resident person against non VAT invoice

1.5%15%

1.5%15%

T.

Payment on contract to Non Resident Person- On service contract(For both Resident & Non Resident Person)- On repair of aircraft & other contract- In cases other than above as directed by IRD.

15%5% 15%

5%

U. TDS deducted on payment of dividend made by Mutual fund to natural Person is final withholding Tax. 5% 5%

V. TDS on Payment by Resident Person for utilizing services related with Satellite, Bandwidth, OpticalFiber, equipment relating to telecommunications or electric transmission 10% 10%

W. Dividend Paid by Partnership Firm to its Partners 5% 5%X. Payment for the freight to transportation service 2.5% 2.5%Y. Payment made against question setting, answer evaluation 15% TDS 15% TDSZ. Payment to Non Resident Company against Insurance Premium 1.5% 1.5%

AA. Payment to Non Resident Company against Commission paid for Reinsurance 1.5% 1.5%AB. Payment made to Consumer Committee 1.5% 1.5%AC. Commercial Import of Buffalo, Goat, Sheep, Fresh & Frozen Fish, Fruits, 5% of Custom Value 5% of custom value

WITHHOLDING TAXES/(TAX DEDUCTED AT SOURCE)


VALUE ADDED TAX- No changes in the existing Value Added Tax rate of 13 percent

for the fiscal year 2075/76 except stated in Schedule 1 andSchedule 2.

- For promoting export , the bonded ware house facility shall beprovided to the industry exporting more than 20% of totalproduction in case of import of raw materials.

- The threshold for doing the taxable transaction has not beenchanged i.e. 5 million for person dealing in goods, 2 million forservice provider and 2 million for person involved in both thetransactions.

- The exemption of VAT on Wheat and Meslin Flour (H. Code1103.11.00) and Soyabean has been removed.

- The Vat exemption on Herbicides Ant sprouting Products(H.Code. 3808.93.00) has been removed and Vat exemptionprovided to Herbicides only via (H. Code. 3808.93.10)

- Vat exemption has been provided on Accessories and parts ofFactory generating electricity from wind (H. Code. 8502.31.00)and Solar Panels and Modules (H. Code 8541.40.00).

- The VAT exemption is provided in case of medical and healthinsurance.

- The person dealing with the scrap business is kept under thecoverage of VAT and beauty parlors is excluded from thecompulsory registration of VAT.

- The VAT exemption on transportation of goods (except inrelation to supplies) has been removed.


VALUE ADDED TAX


10 (2)

Where the transaction of goods or services of a person becomes taxable or the person conducts following transactions, the person shall make an application in the prescribed format for the purpose of registration in front of tax officer within 30 days of transaction being taxable or operation of transaction:

a. Operation of business related to brick production, alcohol, wine , health club, disco theque, massage therapy, motor parts, electronic software, customs agent, toys and scrap business, trekking, rafting, ultra light flight, paragliding, tourist vehicle, crusher, sand mine, slate or stone.

b. Where a person conducts business of hardware, sanitary, furniture, fixture,furnishing, automobiles, motor parts, electronics, marble, Educational and Legal consultancy, Account and Audit related services., catering service, party palace, parking service, dry cleaners using machinery, restaurant with bar, ice cream industry, colour lab, boutique, Tailoring with shirting suiting materials, uniform supplier for educational, health or other entities inside Metropolitan City, Sub Metropolitan City, Municipality or areas

Where the transaction of goods or services of a person becomes taxable or the person conducts following transactions, the person shall make an application in the prescribed format for the purpose of registration in front of tax officer within 30 days of transaction being taxable or operation of transaction:

a. Operation of business related to brick production, alcohol distributor, wine shop, software, trekking, rafting, ultra light flight, paragliding, tourist vehicle, crusher, sand mine, slate or stone.

b. Where a person conducts business of hardware, sanitary, furniture, fixture, furnishing, automobiles, motor parts, electronics, marble, educational consultancy, disco theque, health club, massage therapy, beauty parlour, catering service, party palace, parking service, drycleaners using machinery, restaurant with bar, ice cream industry, colorlab, boutique, Tailoring with shirting suiting materials, uniform supplier for educational, health or other entities inside Metropolitan City, Sub Metropolitan City, Municipality or areas

10 (2) GaPerson registered under this act shall mandatorily update the information and document regarding their registration under biometric system within prescribed time frame


19 (7) Ka While making payment of Tax exceeding Rs. 10 lakhs, it must be made through cheque, draft or electronic means New Provision introduced by Finance Bill 2076

24 (3)A registered person may file a claim to a tax officer for a lump sum refund, as prescribed, of the amount of the remaining excess after offsetting for a continuous period of four months under this section.

A registered person may file a claim to a tax officer for a lump sum refund, as prescribed, of the amount of the remaining excess after offsetting for a continuous period of six months under this section.

The major changes brought forward by finance bill 2076/77 relating to VAT are as :


VALUE ADDED TAX


25 (1) Ka1Tax amount paid by the diplomat of a foreign country on purchase of taxable Goods or Services in Nepal under the recommendation of Minstry of Foreign affairs, Nepal Government shall be refunded.


25 (1Ka) Tax refund to the foreign diplomats shall not be given on the purchase of goods and services of less than Rs. 10000 at a time.

Tax refund to the foreign diplomats shall not be given on the purchase of goods and services of less than Rs. 5000 at a time.

25 (1Kha)10% of VAT of the related invoice will be deposited to bank account of buyer on purchase of goods or services through card or online mechanism. Withholding tax shall not be deducted in such refund


29 (1) Kha (2) The person not submitting the changes in registration details within 15 days to the Tax Officer shall be fined with the amount of Rs. 10,000 for each instances. New Provision introduced by Finance Bill 2076

29 (1) GaBreach of sec 14 (1) of Vat Act, for person not issuing tax invoice, fine of Rs.10,000for each instance and for person not taking invoice fine of Rs. 1000 for each instance .

For breach of Sub-sections (1) and (4) of Section 14, the amount of Rs.5000 for each instance

29 (1) Ga 1Breach of sec 14 (4) of Vat Act, for person not carrying the tax invoice for transportation of goods exceeding value Rs. 10,000, fine of Rs.10,000 for each instance.


31 Ka The taxpayer who makes an application to Administrative appeal has to pay the full amount of undisputed tax and 1/4th of the disputed tax

The taxpayer who makes an application to Administrative appeal has to pay the full amount of undisputed tax and 1/3rd of the disputed tax.

The major changes brought forward by finance bill 2076/77 relating to VAT are as :


VALUE ADDED TAX REGULATIONThe major changes brought forward by finance bill 2076/77 relating to VAT are as :

Rule New Provision Existing Provision

6 Ka (2)Government entity, Public institution, or association or registered person while receiving contract or Consultancy services in excess of rupee 500 thousand per annum shall receive from a registered person only.

Government entity, Public institution, or association or registered person while providing contract in excess of rupee 500 thousand per annum or while receiving consultancy services in excess of rupee 100 thousand per annum shall give or receive to/ from a registered person only.

6 Ga

Government entity, Public institution, or association or registered person while making the payment for contract agreement or contract or supply of goods or services, out of the tax payable to the party, 50% of the amount shall have to be deposited directly to the related revenue head direclty in the name of party and only remaing 50% to be paid to the party. However the concerned contractor or supplier can set off such amount against the tax payable.


39 (5)

If a registered person exports more than Forty percent of his/her total monthly sale carried out in any month, he has to make an application, accompanied also by necessary documents related with the export, to the Tax Officer in the format as referred to in Schedule-10 to get refund of the deductible tax which has became excess for that month.

If a registered person exports more than Fifty percent of his/her total monthly sale carried out in any month, he has to make an application, accompanied also by necessary documents related with the export, to the Tax Officer in the format as referred to in Schedule-10 to get refund of the deductible tax which has became excess for that month.

41 (1) Gha For purposes of Section 17 of the Act, tax deduction shall not be allowed in petroleum products (petrol, diesel and L.P gas)

For purposes of Section 17 of the Act, tax deduction shall not be allowed in light petroleum (petrol) fuel for motor vehicles


EXCISE DUTY

• Zero percent facility shall be provided to battery manufactured and supplied through domestic industry to be used in machinery and equipment generating solar energy with on the recommendation of Alternative Energy Promotion Centre.

• If the License holders engaged in production and import, who do not renew their license within the time prescribed as per section 9(5), then fine shall be 50% of renewal fees for the first 3 months and for the next three months, fine shall be 100% of renewal fees. However, license holders engaged in production and import who do not renew their license within the time prescribed as per section 9(5) but if wants to renew their license can do so by paying the renewal fees for each year along with fine of 100% of renewal fees by the end of Poush 2076.

• The excise duty on cement has been increased to Rs. 220 Per MT , Cheese balls and Potato chips to Rs. 17 per Kg, Soft drinks to Rs. 11 per Litre.


EXCISE DUTYChanges in Excise rate for FY 2076/77

Heading Sub-Heading ParticularsExcise Duty (% except otherwise specified)

for FY 2076-77

Excise Duty (% except otherwise specified) for

FY 2075-76

08.01 Coconuts, Brazil nuts and cashewnuts, fresh or dried, whether or not shelled or peeledCoconuts:

0801.11.00 Desiccated 5 -

19.02Pasta, whether or not cooked or stuffed (with meat or other Substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni, couscous, whether or not prepared.Uncooked pasta, not stuffed or otherwise prepared:

1902.11.00 Containing eggs 17 per kg 15 per kg1902.19.00 Other 17 per kg 15 per kg1902.20.00 Stuffed pasta, whether or not cooked or otherwise prepared 17 per kg 15 per kg1902.30.00 Other pasta 17 per kg 15 per kg1902.40.00 Couscous 17 per kg 15 per kg

19.05Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa, communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.Other:

1905.90.20 Potatoes chips 17 per kg 15 per kg21.06 Food preparations not elsewhere specified or included.

Other:2106.90.20 Pan Masala without Tobacco 610 per kg 555 per kg2106.90.60 Kurkure, kurmure, lays & Similar goods 17 per kg 15 per kg2106.90.70 Scented areca nuts without Tobacco 225 per kg 205 per kg


EXCISE DUTY

Heading Sub-Heading Particulars

Excise Duty (% except otherwise specified) for FY 2076-77

Excise Duty (% except otherwise specified) for FY 2075-76

22.02Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured and other non-alcoholic beverages, not including fruit or vegetable juices of Heading 20.09

Other:2202.91.00 Non-alcoholic beer 17 per ltr 15 per ltr

Other 17 per ltr 15 per ltr2202.99.10 Energy drinks 30 per ltr 25 per ltr2202.99.90 Other 11 per ltr 10 per ltr

25.23 Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.Portland cement:

2523.21.00 White cement, whether or not artificially coloured 220 per MT 200 per MT2523.29.00 Other 220 per MT 200 per MT2523.30.00 Aluminous cement 220 per MT 200 per MT2523.90.00 Other hydraulic cements 220 per MT 200 per MT

Changes in Excise rate for FY 2076/77


CUSTOMS DUTY

• For the accompanied /unaccompanied baggage brought for personal use (other than custom free baggage), instead of custom duty, excise duty and VAT, flat 40 % custom duty shall be charged except in the case of following :

a) In case of silver ornaments, cigarette, tobacco pipe, liquor, vehicles, arms and ammunitions and other items which can be imported after taking license, charge will be levied as per rate list.

b) In case of gold and gold ornaments,

• For import of goods (from respective countries) manufactured in India and China directly to Nepal through Letter of Credit (L.C.), discount will be provided at value based rate (not in quantity based rate).

• Facility of importing raw materials by opening bank guarantee has been made available to industries engaged in export of alcohol, cigarette and tobacco items as well (Previously facility of importing raw materials by opening bank guarantee was not available to industries engaged in export of alcohol, cigarette and tobacco items.)

a. Gold Upto 50 grams Rs. 6200 per 10 grams

51 to 100 grams Rs. 7200 per 10 grams

b. Gold Ornaments Upto 50 grams No charge

51 to 150 grams Rs. 7200 per 10 grams

Custom Rate Discount

5% to 30% 5%

Above 30% 3%


CUSTOMS DUTYChanges in customs rate for FY 2076/77

Heading Sub-Heading Description of ArticleImport Duty (% except otherwise specified) for FY 2076-77

Import Duty (% except otherwise specified) for FY 2075-76

02.07 Meat and Edible Offal, of the poultry of Heading 01.05, fresh, Chilled or frozen.Of fowls of the species Gallus domesticus:

0207.11.00 Not cut in pieces, fresh or chilled 30 100207.12.00 Not cut in pieces, frozen 30 100207.13.00 Cuts and offal, fresh or chilled 30 100207.14.00 Cuts and offal, frozen 30 10

04.02 Milk and cream, concentrated or containing added sugar or other sweetening matter

0402.10.00 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5% 40 30In powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5%:0402.21.00 Not containing added sugar or other sweetening matter 40 300402.29.00 Other 40 30

Other:0402.91.00 Not containing added sugar or other sweetening matter 40 300402.99.00 Other 40 30

04.05 Butter and other fats and oils derived from milk; dairy spreads.0405.10.00 Butter 40 300405.20.00 Dairy spreads 40 300405.90.00 Other 40 30

07.13 Dried leguminous vegetables, shelled, whether or not skinned or split0713.10.00 Peas (Pisum sativum) 15 10

08.01 Coconuts, Brazil nuts and cashewnuts, fresh or dried, whether or not shelled or peeledCashew Nuts:

0801.31.00 In shell 15 100801.32.00 Shelled 15 10

09.01 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportionCoffee, not roasted:

0901.11.00 Not decaffeinated 40 200901.12.00 Decaffeinated 40 20


CUSTOMS DUTY



Coffee, roasted:0901.21.00 Not decaffeinated 40 300901.22.00 Decaffeinated 40 300901.90.00 Other 40 30

09.02 Tea, whether or not flavoured0902.10.00 Green tea (not fermented) in immediate packings of a content not exceeding 3kg 40 300902.20.00 Other green tea (not fermented) 40 30

0902.30.00 Black tea (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3 kg 40 30

0902.40.00 Other black tea (fermented) and other partly fermented tea 40 3009.04 Pepper of the genus Piper; dried or crushed

0904.11.00 Neither crushed not ground 20 100904.12.00 Crushed or ground 20 10

12.02 Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken-Other:

1202.42.00 Shelled, whether or not broken 15 1017.01 Cane or beet sugar and chemically pure sucrose, in solid form

Raw sugar not containing added flavouring or colouring matter:1701.12.00 Beet sugar 40 30

Cane sugar specified in Subheading Note 2 to this Chapter1701.13.10 Sakhhar (Gud) 40 301701.13.20 Khanda sugar 40 301701.13.90 Other 40 30

Other cane sugar:1701.14.10 Sakhhar (Gud) 40 301701.14.20 Khanda sugar 40 301701.14.90 Other 40 30

Other:1701.91.00 Containing added flavouring or colouring matter 40 301701.99.00 Other 40 30

17.04 Sugar confectionery (including white chocolate), not containing cocoa1704.10.00 Chewing gum, whether or not sugar coated 40 301704.90.00 Other 40 30

18.06 Chocolate and other food preparations containing cocoa1806.10.00 Cocoa powder, containing added sugar or other sweetening matter 40 30


CUSTOMS DUTY



1806.20.00 Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg 40 30

Other, in blocks, slabs or bars:1806.31.00 Filled 40 301806.32.00 Not filled 40 301806.90.00 Other 40 30

19.02 Pasta, whether or not cooked or stuffed (with meat or other Substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared

Uncooked pasta,not stuffed or otherwise prepared:1902.11.00 Containing eggs 40 301902.19.00 Other 40 301902.20.00 Stuffed pasta, whether or not cooked or otherwise prepared 40 301902.30.00 Other pasta 40 301902.40.00 Couscous 40 30

19.05Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.

1905.10.00 Crispbread 40 301905.20.00 Gingerbread and the like 40 30

Sweet bisuits; waffles and wafers: 1905.31.00 Sweet biscuits 40 301905.32.00 Waffles and wafers 40 301905.40.00 Rusks, toasted bread and similar toasted products 40 30

Other:1905.90.20 Potatoes chips 40 301905.90.90 Other 40 30

20.09 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter.

Orange juice:2009.11.00 Frozen 60 302009.12.00 Not frozen, of a Brix value not exceeding 20 60 302009.19.00 Other 60 30


CUSTOMS DUTY



Grapefruit (including pomelo) juice:2009.21.00 Of a Brix value not exceeding 20 60 302009.29.00 Other 60 30

Juice of any other single citrus fruit:2009.31.00 Of a Brix value not exceeding 20 60 302009.39.00 Other 60 30

Pineapple juice:2009.41.00 Of a Brix value not exceeding 20 60 302009.49.00 Other 60 302009.50.00 Tomato juice 60 30

Grape juice (including grape must)2009.61.00 Of a Brix value not exceeding 20 60 302009.69.00 Other 60 30

Apple juice:2009.71.00 Of a Brix value not exceeding 20 60 302009.79.00 Other 60 30

Juice of any other single fruit or vegetable:2009.81.00 Cranberry (Vaccinium macrocarpon, Vaccinium oxycoccos, Vaccinium vitis-idaea) juice 60 302009.89.00 Other 60 302009.90.00 Mixtures of juices 60 30

21.03 Sauces and preparations therefor, mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard.

2103.10.00 Soya sauce 20 152103.20.00 Tomato ketchup and other tomato sauces 20 152103.30.00 Mustard flour and meal and prepared mustard 20 152103.90.00 Other 20 15

21.05 2105.00.00 Ice cream and other edible ice, whether or not containing cocoa 20 1521.06 Food preparations not elsewhere specified or included.

2106.10.00 Protein concentrates and textured protein Substances 20 15Other2106.90.10 Dalmott, Papad, Salted, Bhujyia and Chamena (titbits) 30 202106.90.20 Pan Masala without Tobacco 40 302106.90.60 Kurkure, kurmure, lays & Similar goods 40 30

Other2106.90.91 Food supplement 20 202106.90.92 Herbal tea 40 202106.90.99 Other 30 20


CUSTOMS DUTY



22.01 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow.

2201.10.00 Mineral waters and aerated waters 40 302201.90.00 Other 40 30

22.02 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of Heading 20.09.

2202.10.00 Waters, including mineral waters and aerated waters containing added sugar or other sweetening matter or flavoured 40 30

Other:2202.91.00 Non-alcoholic beer 40 30

Other:2202.99.10 Energy Drinks 75 302202.99.90 Other 40 30

22.03 2203.00.00 Beer made from malt 200 per ltr. 165 per ltr.

22.04 Wine of fresh grapes, including fortified wines; grape must other than that of Heading 20.09.

2204.10.00 Sparkling wine 300 per ltr. 240 per ltr.

Other wine; grape must with fermentation prevented or arrested by the addition of alcohol:

2204.21.00 In containers holding 2 L or less Per ltr. 300 per ltr. 240 per ltr.2204.22.00 In containers holding more than 2 L but not more than 10 L 300 per ltr. 240 per ltr.2204.29.00 Other 300 per ltr. 240 per ltr.2204.30.00 Other grape must 300 per ltr. 240 per ltr.

22.06 Other fermented beverages (for example, cider, perry, mead, saké); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included.

2206.00.10 Chhayang (Country Beer) 40 302206.00.90 Other 40 30

22.07 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl alcohol and other spirits, denatured, of any strength.

2207.10.00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher 50 per ltr. 30 per ltr.2207.20.00 Ethyl alcohol and other spirits, denatured, of any strength 50 per ltr. 30 per ltr.


CUSTOMS DUTY



22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and other spirituous beverages.Spirits obtained by distilling grape wine or grape marc:

2208.20.10 All kinds of alcoholic fluids including spirits used as raw material of wine or brandy 1200 per ltr 900 per ltr2208.20.90 Other 2000 per ltr 1600 per ltr

Whiskies:2208.30.10 Alcoholic fluids including spirits used as raw materials of whisky 1200 per ltr 900 per ltr2208.30.90 Other 2000 per ltr 1600 per ltr

Rum and other spirits obtained by distilling fermented sugar-cane products:

2208.40.10 Alcoholic fluids including spirits used as raw materials of Rum and other spirits obtained by distilling fermented sugar-cane products 1200 per ltr 900 per ltr

2208.40.90 Other 2000 per ltr 1600 per ltrGin and Geneva:

2208.50.10 Alcoholic fluids including spirits used as raw materials of Gin and Geneva 1200 per ltr 900 per ltr2208.50.90 Other 2000 per ltr 1600 per ltr

Vodka:2208.60.10 Alcoholic fluids including spirits used as raw materials of Vodka 1200 per ltr 900 per ltr2208.60.90 Other 2000 per ltr 1600 per ltr

Liqueurs and cordials:2208.70.10 Alcoholic fluids including spirits used as raw materials of Liqueurs and cordials 1200 per ltr 900 per ltr2208.70.90 Other 2000 per ltr 1600 per ltr

Other:2208.90.10 Alcoholic fluids including spirits used as raw materials of liquor 1200 per ltr 900 per ltr2208.90.90 Other 2000 per ltr 1600 per ltr

23.09 Preparations of a kind used in animal feeding.2309.90.00 Other 10 5

24.03 Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essencesOther:

2403.99.10 Jarda, Khaini, Snuff, Ghutka and similar preparations containing chewing tobacco 40 302403.99.20 Packed chewing tobacco, to be mixed in lime, put up for retail sale 40 302403.99.90 Other 40 30

33.05 Preparations for use on the hair.3305.10.00 Shampoos 20 153305.20.00 Preparations for permanent waving or straightening 20 153305.30.00 Hair lacqeurs 20 15


CUSTOMS DUTY



38.08Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plantgrowth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers).

Goods specified in Subheading Note 1 to this Chapter:3808.93.10 Herbicides 5 53808.93.90 Anti-sprouting products and plantgrowth regulators 10 5

39.18 Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in Note 9 to this Chapter.Of polymers of vinyl chloride:

3918.10.10 Roffing sheets, Roffing tiles 20 1539.26 Other articles of plastics and articles of other materials of Headings 39.01 to 39.14

Other:3926.90.20 Plastic dye for shoe making 10 10

Other:3926.90.91 Tarpaulins and Tents 30 303926.90.99 Other 30 30

40.11 New pneumatic tyres, of rubber.4011.80.00 Of a kind used on construction, mining or vehicles and machines industrial handling 20 154011.90.00 Other 20 15

49.01 Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets.

4901.10.00 In single sheets, whether or not folded 10 FreeOther:

4901.91.00 Dictionaries and encyclopaedias, and serial instalments thereof 10 Free4901.99.00 Other 10 Free

49.03 4903.00.00 Children's picture, drawing or colouring books. 10 Free49.04 4904.00.00 Music, printed or in manuscript, whether or not bound or illustrated. 10 Free52.01 5201.00.00 Cotton, not carded or combed. 5 Free52.02 Cotton waste (including yarn waste and garnetted stock).

5202.10.00 Yarn Waste (including thread waste) 5 FreeOther:

5202.91.00 Garnetted stock 5 Free5202.99.00 Other 5 Free

52.03 5203.00.00 Cotton, carded or combed 5 Free


CUSTOMS DUTY



52.05 Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for retail sale.Single yarn, of uncombed fibres:

5205.11.00 Measuring 714.29 decitex or more (not exceeding 14 metric number) 5 1

5205.12.00 Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number

5 1

5205.13.00 Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)

5 1

5205.14.00 Measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)

5 1

5205.15.00 Measuring less than 125 decitex (exceeding 80 metric number) 5 1Single yarn, of combed fibres:



5 1


5 1


5 1

5205.26.00 Measuring less than 125 decitex but not less than 106.38 decitex (exceeding 80 metric number but not exceeding 94 metric number)

5 1

5205.27.00 Measuring less han 106.38 decitex but not less than 83.33 decitex (exceeding 94 metric number but not exceeding 120 metric number)

5 1

5205.28.00 Measuring less than 83.33 decitex (exceeding 120 metric number) 5 1Multiple (folded) or cabled yarn, of uncombed fibres:



5 1


5 1


5 1

5205.35.00 Measuring less than 125 decitex (exceeding 80 metric number) 5 1Multiple (folded) or cabled yarn, of combed fibres:



CUSTOMS DUTY



5205.42.00 Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number 5 1

5205.43.00 Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number) 5 1

5205.44.00 Measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number) 5 1

5205.46.00 Measuring less than 125 decitex but not less than 106.38 decitex (exceeding 80 metric number but not exceeding 94 metric number) 5 1

5205.47.00 Measuring less han 106.38 decitex but not less than 83.33 decitex (exceeding 94 metric number but not exceeding 120 metric number) 5 1

5205.48.00 Measuring less than 83.33 decitex (exceeding 120 metric number) 5 152.07 Cotton yarn (other than sewing thread) put up for retail sale

5207.10.00 Containing 85% or more by weight of cotton 5 1

63.06 Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or land craft; camping goods.

Tarpaulins, awnings and sunblinds:6306.12.00 Of synthetic fibres 30 156306.19.00 Of other textile materials 30 15

Tents:6306.22.00 Of synthetic fibres 30 156306.29.00 Of other textile materials 30 15

64.01 Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes.

6401.10.00 Footwear incorporating a protective metal toecap 30 20Other Footwear:

6401.92.00 Covering the ankle but not covering the knee 30 206401.99.00 Other 30 20

64.02 Other footwear with outer soles and uppers of rubber or plastics.Sports footwear:

6402.12.00 Ski-boots, cross-country ski footwear and snowboard boots 30 206402.19.00 Other 30 206402.20.00 Footwear with upper straps or thongs assembled to the sole by means of plugs 30 20

Other Footwear:6402.91.00 Covering the ankle 30 206402.99.00 Other 30 20


CUSTOMS DUTY



64.03 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.

Sports footwear:6403.12.00 Ski-boots, cross-country ski footwear and snowboard boots 30 206403.19.00 Other 30 20

6403.20.00 Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe 30 20

6403.40.00 Other footwear, incorporating a protective metal toe-cap 30 20Other footwear, with outer soles of leather:

6403.51.00 Covering the ankle 30 206403.59.00 Other 30 20

Other Footwear:6403.91.00 Covering the ankle 30 206403.99.00 Other 30 20

64.04 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.

Footwear with outer soles of rubber or plastics:Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like:

6404.11.90 Having the upper parts of other fabrics 30 206404.19.00 Other 30 206404.20.00 Footwear with outer soles of leather or composition leather 30 20

64.05 Other footwear.6405.10.00 With uppers of leather or composition leather 30 20

With uppers of textile materials:6405.20.90 Other textile materials 30 206405.90.00 Other 30 20

70.13 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of Heading 70.10 or 70.18)

7013.10.00 Of glass-ceramics 20 15Stemware drinking glasses, other than of glassceramics:

7013.22.00 Of lead crystal 20 157013.28.00 Other 20 15

Other drinking glasses, other than of glass ceramics:7013.33.00 Of lead crystal 20 157013.37.00 Other 20 15


CUSTOMS DUTY



Glassware of a kind used for table (other than drinking glasses) or kitchen purposes, other than of glass-ceramics:

7013.41.00 Of lead crystal 20 15

7013.42.00 Of glass having a linear coefficient of expansion not exceeding 5X10-6 per Kelvin within a temperature range of 00c to 3000C 20 15

7013.49.00 Other 20 15

71.08 Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form

Non-monetary:7108.11.00 Powder 5000 per 10 grams 4200 per 10 grams7108.12.00 Other unwrought forms 5000 per 10 grams 4200 per 10 grams7108.13.00 Other semi-manufactured forms 5000 per 10 grams 4200 per 10 grams

71.13 Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.

Of precious metal whether or not plated or clad with precious metal:Of other precious metal, whether or not plated or clad with precious metal:

7113.19.10 Of gold 15 157113.19.90 Of other precious metal 15 15

72.10 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated

Otherwise plated or coated with zinc:7210.41.00 Corrugated 20 15

76.16 Other articles of aluminiumOther:

7616.91.00 Cloth, grill, netting and fencing, of aluminium wire 15 107616.99.00 Other 15 10

84.09 Parts suitable for use solely or principally with the engines of Heading 84.07 or 84.08Other:

Suitable for use solely or principally with sparkignition internal combustion piston engines

8409.91.10 Of motor vehicles 15 158409.91.90 Other 15 15

Other:8409.99.10 Of motor vehicles 15 158409.99.90 Other 15 15


CUSTOMS DUTY



84.79 Machines and mechanical appliances having individual functions, not specified or included elsewherein this Chapter.Other:

8479.89.20 Cement ceiling filling machine Free Free8479.89.30 Machine for reproduction by recyling waste products 5 Free8479.89.40 Garbage compactor 5 Free8479.89.50 Machiner for production of medicine 5 Free8479.89.60 Sailo

85.02 Electric generating sets and rotary converters.Generating sets with compression-ignition internal combustion piston engines (diesel or semi-diesel engines):Of an output not exceeding 75 kVA

8502.11.90 Other 5 18502.12.00 Of an output exceeding 75 kVA but not exceeding 375 kVA 5 18502.13.00 Of an output exceding 375 kVA 5 1

85.04 Electrical transformers, static converters (for example, rectifiers) and inductorsStatic converters

8504.40.10 AC and DC flat charge for charging electric vehicles 10 158504.40.90 Other 15 15

87.01 Tractors (other than tractors of 87.09)Road tractors for semi-trailers:

8701.20.10 Upto 18 kW 5 58701.20.90 Above 18 kW 5 5

87.04 Motor vehicles for the transport of goods

Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel):

g.v.w. not exceeding 5 tonnes:

8704.21.10 Double-cab pick-up principally designed for the transport of goods and having more than 2 seats including driver for the transportation of persons 40 30

g.v.w. Exceeding 5 tonnes but not exceeding 20 tonnes:

8704.22.10 Double-cab pick-up principally designed for the transport of goods and having more than 2 seats including driver for the transportation of persons 40 30


CUSTOMS DUTY



87.05Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile work shops, mobile radiological units).

Other:8705.90.10 Road cleaning broomer 5 108705.90.90 Other 10 10

87.11 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor with or without side-cars; side-cars.

With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 250 cc:Of unassembled condition:

8711.20.11 Of a cylinder capacity exceeding 50 cc but not exceeding 155 cc 30 308711.20.19 Of a cylinder capacity exceeding 155 cc but not exceeding 250 cc 30 30

Other:8711.20.91 Of a cylinder capacity exceeding 50 cc but not exceeding 155 cc 30 308711.20.99 Of a cylinder capacity exceeding 155 cc but not exceeding 250 cc 30 30

89.01 Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods

8901.10.00 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry-boats of all kinds 5 15

8901.20.00 Tankers 5 158901.30.00 Refigerated vessels, other than those of subheading 8901.20 5 15

8901.90.00 Other vessels for the transport of goods and other vessels for the transport of both persons and goods 5 15

89.02 8902.00.00 Fishing vessels; factory ships and other vessels for processing or preserving fishery products 5 15

89.03 Yachts and other vessels for pleasure or sports; rowing boats and canoes.8903.10.00 Inflatable 5 15

Other:8903.92.00 Motorboats, other than outboard motorboats 5 158903.99.00 Other 5 15

89.04 8904.00.00 Tugs and pusher craft 5 15


CUSTOMS DUTY



92.01 Pianos, including automatic pianos; harpsichords and other keyboard stringed instruments.

9201.10.00 Upright pianos 15 59201.20.00 Grand pianos 15 59201.90.00 Other 15 5

92.02 Other string musical instruments (for example, guitars, violins, harps).9202.10.00 Played with a bow 15 59202.90.00 Other 15 5

92.05 Wind musical instruments (for example, keyboard pipe organs, accordions, clarinets, trumpets, bagpipes), other than fairground organs and mechanical street organs.

9205.10.00 Brass-wind instruments 15 59205.90.00 Other 15 5

92.06 9206.00.00 Percussion musical instruments (for example, drums, xylophones, cymbals,castanets, maracas). 15 5

92.07 Musical instruments, the sound of which is produced, or must be amplified, electrically (for example, organs, guitars, accordions).

9207.10.00 Keyboard instruments, other than accordions 15 59207.90.00 Other 15 5

92.08Musical boxes, fairground organs, mechanical street organs, mechanical singing birds, musical saws and other musical instrument not falling within any other Heading of this Chapter; decoy calls of all kinds; whistles, call horns and other mouth-blown sound signalling instruments.

9208.10.00 Musical boxes 15 59208.90.00 Other 15 5

94.06 Prefabricated buildings.9406.10.00 Of wood 30 159406.90.00 Other 30 15

95.03 9503.00.00 Tricycles, scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; Other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds 10 5

95.04 Video game consoles and machines, articles for funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment

9504.20.00 Articles and accessories for billiards of all kinds 10 5


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9504.30.00 Other games, operated by coins, banknotes, bank cards, tokens or by any other means of payment, other than automatic bowling alley equipment 10 5

9504.40.00 Playing cards 30 209504.50.00 Video game consoles and machines, other than those of subheading 9504.30 10 59504.90.00 Other 10 5

95.05 Festive, carnival or other entertainment articles, including conjuring tricks and novelty jokes

9505.10.00 Articles for Christmas festivities 10 59505.90.00 Other 10 5

95.06Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this Chapter; swimming pools and paddling poolsSnow-skis and other snow-ski equipment:

9506.11.00 Skis 10 59506.12.00 Skis-fastenings (ski-bindings) 10 59506.19.00 Other 10 5

Water-skis, surf-boards, sailboards and other water sport equipment:9506.21.00 Sailboards 10 59506.29.00 Other 10 5

Golf clubs and other golf equipment:9506.31.00 Clubs, complete 10 59506.32.00 Balls 10 59506.39.00 Other 10 59506.40.00 Articles and equipment for table-tennis 10 5

Tennis, badminton or similar rackets, whether or not strung:9506.51.00 Lawn-tennis rackets, whether or not strung 10 59506.59.00 Other 10 5

Balls, other than golf balls and table-tennis balls:9506.61.00 Lawn-tennis balls 10 59506.62.00 Inflatable 10 59506.69.00 Other 10 59506.70.00 Ice skates and roller skates, including skating boots with skates attached 10 5

Other:9506.91.00 Articles and equipment for general physical exercise, gymnastics or athletics 10 59506.99.00 Other 10 5


CUSTOMS DUTY



95.08 Roundabouts, swings, shooting galleries and other fairground amusements; travelling circuses and travelling menageries; travelling theatres.

9508.10.00 Travelling cricuses and travelling menageries 10 5

9508.90.00 Other 10 5

96.13 Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints and wicks.

9616.10.00 Pocket lighters, gas fuelled, non-refillable 15 109616.20.00 Pocket lighters, gas fuelled, refillable 15 109616.80.00 Other lighters 15 10

NBSM Consulting Private Limited

Four Square Complex Narayan Chaur, Naxal, Kathmandu, NepalT : 977-1-4433069 | 4415242E : [email protected]

Disclaimer:The information contained in this document iscompiled by NBSM and is exclusively for theinformation of its clients and staffs. However thedetail study is recommended before taking anydecisions on the matters contained herein.

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