Kathmandu. Finance Minister Dr. Swarnim Wagle said that there is no provision for VAT (VAT) while selling electricity to another businessman. He made it clear that the VAT system will be implemented in such a way that only the end consumers will be affected.

Speaking at a meeting of the Finance Committee under the House of Representatives on Wednesday, Minister Wagle said that various policy reforms have been made to make the tax system simple, scientific and investment-friendly. According to him, taxpayers with an annual income of up to Rs 1 0 lakh will have to pay only 1 percent income tax. In addition, the upper rate of income tax (marginal tax rate has been reduced from 39 percent to 29 percent.

Minister Wagle said that a new provision has been introduced through the budget to deduct 25 percent of the expenditure on the education of children or the amount of Rs 25,000 whichever is less. He urged citizens to join the formal tax system and submit income tax returns (income, tax file).

He said that the customs duty on electric (EV) will now be determined on the basis of the price of instead of ‘peak power’. Stating that customs duty was misused in the past while determining the peak power and the Auditor General pointed out arrears worth billions of rupees, he said the new system has been implemented based on scientific practice and research. He also informed that the policy has been corrected so that the price of EVs will not increase by more than Rs 50 lakh.

Likewise, the government has also decided to waive tax for 10 years from the date of operation of cinema halls operating in areas other than metropolitan cities and sub-metropolitan cities, said Minister Wagle.

He also informed that the VAT on carriers used for transporting blood and vaccines to the health sector has been reduced from 30 percent to 15 percent.