Kathmandu. Finance Minister Dr. Swarnim Wagle has set a limit of Rs 10 lakh for individual taxpayers by conducting a comprehensive review of the tax system through the budget for the next fiscal year. He also said that the maximum rate of personal income tax has been reduced by 10 percentage points.

With this, those earning up to Rs 1 million will have to pay only 1 percent tax, while those earning more will have to pay 29 percent tax.

Presenting the budget for the coming fiscal year at a joint meeting of the federal parliament on Friday, he said that a comprehensive review of the tax system has been made to make the overall economy dynamic through the expansion of the middle class.

He said that the customs duty on industrial raw materials will be at least one level less than the finished goods to encourage industrial production. Under this, the customs rate on 273 types of raw materials has been reduced and the customs structure of 11 levels has been restructured and reduced to seven levels.

Similarly, excise duty on 360 items has been scrapped. According to him, the scattered taxes including infrastructure development tax, road maintenance and improvement fees collected at the customs point have been integrated into the ‘green tax’.

Similarly, Section 57 of the Income Tax Act, 2058 will not be attracted to the change of ownership in the controlling body due to the change of ownership in the body due to the change in ownership of the body after the death of the natural person.

The capital gains tax levied on the sale of securities of listed companies will be recognized as final tax. In order to encourage digital payment, consumers will get 10 percent discount on VAT while purchasing goods and services through digital medium.

A provision has been made in the budget to make the VAT refund system fully automated. Likewise, the budget has stated that attractive programs including lottery would be run to encourage the culture of taking invoices in the purchase and sale of goods and services.