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Nepal Budget 2016/17

Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Table of Contents

BUDGET HIGHLIGHTS......................................................................................................................3
HIGHLIGHTS OF AMENDMENTS IN TAX LAWS...................................................................8
Amendment Highlights...................................................................................................................9
Value Added Tax (VAT) Act 2052..............................................................................................10
Schedule - 1: Additional List of VAT Exempt Goods and Services...........................13
Schedule - 2: Additional List of Goods and Services subject to Zero rate............14
Excise Duty Act 2058.....................................................................................................................15
Changes in Excise Rate.............................................................................................................18
Income Tax Act 2058.....................................................................................................................23
Income Tax Rates - Schedule I...............................................................................................27
Customs Act 2064...........................................................................................................................29
Increase in Custom Tariff........................................................................................................31
Decrease in Custom Tariff.......................................................................................................33
Change in Valuation Method..................................................................................................42

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

BUDGET HIGHLIGHTS

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Budget Highlights
On Saturday, 28th of July 2016, budget for the Fiscal Year 2016/17 was presented:
Below is the Source of Finance and Allocation of Budget presented:

Sources of Finance
Amount in Billion

111.00

59.41
Revenue Mobilization
Principal Repayment

195.72

565.90

Foreign Grants
Foreign Loan

106.90

Domestic Borrowing
Current Year Cash Balance

10.00

Objectives

Allocation of Budget
Amount in Billion

To implement the Constitution,


To revive the economy affected by the
earthquake and the supply system
disruption,
To attain high economic growth through
increasing productivity and production,
To promote domestic and external
investment,
To expand economic activities, increase
income and employment and reduce
poverty,
To create opportunities, capacity building
and social protection,
To provide quality social service to all
Nepali people.

119.81
311.95
617.16

Current Expenditure

Capital Expenditure

Financing

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Priority Areas

Post-earthquake reconstruction, rehabilitation and new construction


Hydro power generation, transmission line expansion and distribution
Road, airport, irrigation
Agriculture, industry, tourism, forest
Urban and local infrastructure
Education, health, drinking water, sanitation
Social security
Service delivery, corruption control and governance reform

Hydropower for Economic Prosperity


Projects on hydropower generation, transmission and distribution will be
implemented with a clear roadmap for reducing load shedding substantially within
next year, ending load shedding completely within two years, becoming self-reliant
in electricity within three years during monsoon and exporting hydropower within
ten years.
A strategy will be adopted to ascertain the capacity of Nepal's potential hydropower
by conducting general survey, commending hydropower generation by fixing time
frame and constructing the transmission lines through focusing on hydropower
generation
Chameliya and Kulekhani Third Projects, Upper Tamakoshi and Upper Trishuli 3A
Projects and Rasuwagadhi Project will be connected to the national grid by
completing them within one year, two years and three years, respectively
Initiation will be taken to develop Karnali Chisapani Multipurpose Project with the
capacity of more than 10,000 MW as a tripartite friendship project of the friendly
nations India, China and Nepal.
Energy audit system will be introduced in order to improve the energy efficiency
among the large hydro clients. Technical audit will be conducted in respect of
completed hydropower projects.

Financial Sector Reform


Nepal Rastra Bank Act Amendment Bill, Bank and Financial Institution related
Bill, Deposit and Credit Guarantee Bill, Employees Provident Fund Act
Amendment Bill and Banking Crime Act Amendment Bill, which are under
consideration in the Legislature-Parliament will be passed and implemented.
Amendment Bills of Foreign Exchange Regulation Act and Citizen Investment
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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Fund Act, Insurance Bill and Commodity Market Related Bills will be submitted in
the Legislature-Parliament in the next Fiscal Year.
Infrastructure Development Bank will be established with public private
partnership to increase the investment in infrastructure sector.
Bank and Financial Institutions will be encouraged to expand their services in rural
sector.
Mobile Banking and Branchless banks will be promoted.
Production based companies will be encouraged to be listed in the stock market.
15 percent tax rebate on their income for the industries and businesses established
under public companies and Companies listed in the stock market
Insurance companies will be encouraged to expand the access in rural sector. A
provision will be made to insure government property, cultural and archeological
heritages. A provision will be made to insure private houses.
A compulsory provision has been made to the insurance companies to dedicate
minimum 5 percent of their insurance services to micro insurance.
Under the vehicle insurance, a similar provision of third party insurance will be
made to insure the passengers travelling in public vehicles.
The concessional loan provided by Rural Self Reliance Fund, Poverty Alleviation
Fund and Youth and Small Business Self Employment Fund will be continued. The
implementation of concessional agriculture loan program focused on youth and
small Business will be made mandatory to the bank and financial institutions.
Financial literacy program will effectively be expedited

Tax System Reform for Economic Prosperity


Single Tax Code Bill will be tabled in Legislature-Parliament to simplify and update
the tax law and procedure.
Additional three hundred thousand taxpayers will be brought into tax net by
allotting Permanent Account Number to all income earner and businessmen

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

The provision of building database by receiving income tax return from those
having income above Rs. 4 million will be implemented with high priority
Tripartite agreement among producer, authorized dealer, and authorized
purchaser will be made a basis for custom clearance of vehicles.

Control of Tax Evasion for Fairness and Neutrality of Tax System


The financial statement and tax amount will be used as a reference for credit
mobilization through bank and financial institutions for fair business.
Special unit will be established in Inland Revenue Department to control tax
planning and tax evasion for the protection of tax base.

Federal Reserve Fund


Revenue which falls under the right of State Governments as per Schedule- 6 of the
Constitution of Nepal will be deposited into Federal Reserve Fund until State
Reserve Fund is operated.
Such amount shall be transferred to State Reserve Fund after operation of such
fund.

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

HIGHLIGHTS OF AMENDMENTS IN TAX LAWS

Value
Added Tax
(VAT)

Excise
Duty

Income
Tax

Custom
Duty

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights
Infrastructure Tax
Infrastructure Tax shall be charged on import of Aviation fuel, petrol and diesel in Nepal
at custom point at the rate Rs 5 per liter.

Royalty on Casino Operations:


Existing Provision
Person and entity running casino
operations in Nepal in FY 2073/74 shall
pay annual royalty of Rs. 30 Million.
However, Rs. 20 million shall be the
royalty amount if casino operations are
operated through modern machines and
equipment.

Revised Provision
Person and entity running casino
operations in Nepal in FY 2073/74 shall
pay annual royalty of Rs. 30 Million.
However, Rs. 7.5 million shall be the
royalty amount if casino operations are
operated through modern machines and
equipment.

New Provision: Exemption on Demurrage Charges:


Provision of not including the expenses paid in foreign country during the period of
Bhadra 2072 to Falgun 2072 for detention, demurrage and parking fees the into custom
valuation is introduced. In addition to it, such expenses are allowed as deduction for the
Income Tax purpose.

Exemption on Income derived by certain Co0perative Societies:


1. Income tax for the FY 2071/72, as per Income Tax Act 2058, on Savings and Credit CoOperative Society operating in areas declared as municipality during FY 2071/72 shall
be exempt.
2. If such Savings and Credit Co-operative Society has already paid income tax during FY
2071/72, same shall be allowed to set off from income tax liability for FY 2072/73.

Audit of Books of Accounts:


An arrangement has been made so as not to require audit for small and medium taxpayers
having annual transaction of up to Rs. 10 million. Provision of self-certification of income
tax return by such taxpayers shall be sufficient.

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Value Added Tax (VAT) Act 2052


Definitions
Sections
Section 2(m)Registered
Person
Section 2(n)Registration
Number

Existing Provision
"Registered Person" means the
person pursuant to section 10
and 10(a) to carry out the
transaction

Revised Provision
"Registered Person" means the
person pursuant to section 10,
10(a), 10(b) to carry out the
transaction

"Registration Number" means


the number provided to the
registered person pursuant to
section 10 and 10(a)

"Registration Number" means


the number provided to the
registered person pursuant to
section 10, 10(Ka) and 10(b)

Provision in Registration of Joint Venture (JV)


Sections
Section 10(b)Special provision
for Registration
of Joint Venture

Existing Provision
Two or more persons
working together in joint
venture for specific period
and prescribed work shall
have temporary registration
which shall be cancelled
after the expiry of the term
prescribed.

Revised Provision
Two or more persons working
together in joint venture for specific
period and prescribed work shall
have temporary registration which
shall be cancelled after the expiry of
the term prescribed. Additionally,
in case of JV, co-ventures shall
be jointly and severally liable
to pay income tax.

Cancellation of Registration
Sections
Section 11Cancellation
of
Registration

Existing Provision
The Tax Officer may cancel the
registration of a registered person
in
any
of
the
following
circumstances:

10

Revised Provision
The Tax Officer may cancel the
registration of a registered person
in
any
of
the
following
circumstances:

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

1. In the case of a body corporate, 1. In the case of a body


if the body corporate is closed
corporate,
if
the
body
down, sold or transferred or if
corporate is closed down, sold
the
incorporated
body
or transferred or if the
otherwise ceases to exist;
incorporated body otherwise
ceases to exist;
2. In the case of an individual
ownership, if the owner dies;
2. In the case of an individual
ownership, if the owner dies;
3. In the case of a partnership
firm, if it is dissolved or death of 3. In the case of a partnership
Partner;
firm, if it is dissolved or death
of Partner;
4. If a registered person ceases to
be
engaged
in
taxable 4. If a registered person ceases to
transactions;
be
engaged
in
taxable
transactions;
5. If a person is registered in error;
5. If a person is registered in
6. If registered person file zero
error;
return for 12 months.
6. If registered person file zero
return for 12 months;
7. If
total
taxable
transaction of 12 months
is less than 50 lakhs for
goods and 20 lakhs for
goods and services.

VAT Refund
Sections
Section 25C
VAT Refund

Existing Provision
VAT paid on purchases against reexport of goods where payment is
received in advance is to be
refunded to taxpayer

11

Revised Provision
VAT paid on purchases against
re-export of goods where
payment is received in advance is
to be refunded to taxpayer.
However,
no
refund
facilities under this section
will be applicable in case of
export or re-export of goods
in respect of which VAT
refund
facilities
has
already been availed under
Schedule -1.

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Other Areas Covered by Budget Speech


1. Exemption for Small Vendor
Sections
Section 9 read with
Rule 6

Existing Provision
The person who is dealing
in taxable service; taxable
goods and services with a
Exemption for Small turnover not exceeding 1
Vendor
million rupees is not
required to register under
VAT.

Revised Provision
The person who is dealing in
taxable service; taxable goods
and services with a turnover
not exceeding 2 million
rupees is not required to
register under VAT.

2. Display of Sales Price


Mandatory provision has been made to display the price of goods and services
including Value Added Tax in the sales places along with exhibition hall of industrial
establishments, sales counter, shop, hotel and restaurant and bar.

3. VAT Return
Press and electronic publication and transmission center will be allowed to file Value
Added Tax returns on trimester basis.

4. Invoice
Provision of electronic billing will be made mandatory for departmental stores and
taxpayers linked with business chain.
5. VAT Exemption
Value Added Tax on the insurance premium of bird farming, fishery, horticulture
and bee keeping is exempted to improve the contribution of agriculture to the
economy.

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Schedule - 1: Additional List of VAT Exempt Goods and Services


Group- 5: Medicine, Medical Care, and Similar Health Services
SubHeadings
9018.90.00
9402.90.00
9018.12.00
9018.90.00

9022.12.00
9022.21.00
9018.19.00

9018.13.00

Particulars
Hemodialysis Machine
Dialysis Reprocessor
Dialyzer and its Tubing
Dialysis Bed and Chairs
Echocardiograph used in Heart Examination and Check Up
Videoscopes
Cath Lab
Heart-Lung Machine
Defibrillator
Positron Emission Tomography; Stomach Scan Machine; Computed
Tomography (C.T); Scan Machine; Mammography used in Cancer
Examination
Brachytherapy and linear accelerator
Flowsytometer
Next-Generation Sequencer
Protein Microyery Platform and Multiplex Real Time P.C R; Hematology
Analyzer; Blood Chemistry Analyzer; Clinical Chemistry Analyzer and
Immunochemistry Analyzer
Magnetic Resonance Imaging (M.R.I) Machine

SubHeadings
87.14

Particulars
Import of Parts and Supporting Accessories used in production of
Electronic Rickshaw by the industry established with the purpose of
manufacturing Electronic Rickshaws

Group- 11: Other Goods and Services


SubHeadings
8413.70.90

Particulars
Battery Powered DC Pump
Lithium Ion Battery less than 12 volts and 10 ampere used in Solar Light,
on recommendation of Alternative Energy Promotion Centre
Machines purchased by a battery re-processing industry used in battery
re-processing
Machines purchased by manufacturer of plastic bags used for re-cycling
such plastic bags into environment friendly bags like bags of cloth, jute
and paper.

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Schedule - 2: Additional List of Goods and Services subject to


Zero rate

SubHeadings
8507.20.00

Particulars
Deep Cycle Lead-Acid Battery used in SAFA Tempo, on recommendation
of Government of Nepal, Ministry of Population and Environment

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights
Excise Duty Act 2058
Power to Suspend the License
Section
Sec 9A
Power to
Suspend
License

Existing Provision

Revised Provision

If an application is received for


suspension of the licensee, the
Excise Duty Officer shall make
decision to suspend or not to
suspend the license of that licensee,
and if it appears necessary to
suspend the license, suspend it and
give information thereof to the
licensee within Thirty days after
the receipt of the application.

If an application is received for


suspension of the licensee, the
Excise Duty Officer shall make
decision to suspend or not to
suspend the license of that licensee,
and if it appears necessary to
suspend the license, suspend it and
give information thereof to the
licensee within Fifteen days after
the receipt of the application.

Sec 9A (5): Power to Suspend License-Additional Provision


If licensee, whose license was voluntarily suspended, wants to continue transactions of
goods or services subject to excise duty, the licensee shall make an application to excise
duty officer and excise duty officer shall give permission to carry on transaction of
excisable goods or services.

Power to cancel the License


Section
Sec 10
Power to
Cancel
License

Existing Provision
Revised Provision
The Department may cancel the The Department may cancel the
license issued in the following license issued in the following
circumstances: circumstances: 1.

In cases where the terms and


conditions specified in the
license are found to have been
violated;

1. In cases where the terms and


conditions specified in the
license are found to have been
violated;

2.

In cases where it appears to be


contrary to public interest.;

2. In cases where it appears to be


contrary to public interest.;

3.

In cases leviable excise duty not


paid;

3. In cases leviable excise duty not


paid;

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

4.

In cases entity is dissolved or


licensee applies for cancelation
of license.

4. In cases entity is dissolved or


licensee applies for cancelation
of license;
5. In cases, licensee does not
renew the license.

Power to Search, Seize or Arrest


Section
Sec 12(3)
(c)
Power to
Search,
Seize or
Arrest

Existing Provision
In cases where any offense under
this Act is being committed in any
enterprise, house, land, motor
vehicle or place, and the Excise Duty
Officer finds a possibility that the
offender may escape or the proof
and evidence of the offense may
disappear if no action is taken
immediately, the Excise Duty Officer
or employee designated by him/her
may, by executing a memorandum
thereof, personally carry out or
cause any of his/her subordinate
employee to carry out the following
act at any time:

Revised Provision
In cases where any offense under
this Act is being committed in any
enterprise, house, land, motor
vehicle or place, and the Excise
Duty Officer finds a possibility that
the offender may escape or the
proof and evidence of the offense
may disappear if no action is taken
immediately, the Excise Duty
Officer or employee designated by
him/her may, by executing a
memorandum thereof, personally
carry out or cause any of his/her
subordinate employee to carry out
the following act at any time:

to seize the product subject to


excise duty related with the
offense, and such other goods
and documents as may be
ancillary to prove the offense,

to seize the product subject


to excise duty related with
the offense, and such other
goods and documents as
may be ancillary to prove the
offense and seal such
place.

Reward
Section
Existing Provision
Sec 14
A government employee or any other
person who gives information or clue
Reward about any act which is about to be or
being or has been committed contrary
to this Act shall, after final settlement
of the case, be awarded by the
concerned Excise Duty Office a
reward in a sum to be set as follows of
the proceeds recovered from the
16

Revised Provision
A government employee or any other
person who gives information or clue
about any act which is about to be or
being or has been committed
contrary to this Act shall, after final
settlement of the case, be awarded by
the concerned Excise Duty Office a
reward in a sum to be set as follows
of the proceeds recovered

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

claimed amount of the product except on account of excise duty


subject to excise duty seized of the product seized from the
from the accused:
accused:
Ten per cent of the amount in
controversy to the informer;

Ten per cent of the amount in


controversy to the informer;

Twenty per cent of the amount in


controversy
to
one
who
seizes and hands over a product
only;

Twenty per cent of the amount in


controversy
to
one
who
seizes and hands over a product
only;

Thirty per cent of the amount in


controversy
to
one
who
arrests and hands over the
person, along with the proof.

Thirty per cent of the amount in


controversy
to
one
who
arrests and hands over the
person, along with the proof.

Other Area Covered by Budget Speech


Excise Sticker currently imposed in carton of beer shall be imposed in each bottle
of beer for protection of Revenue.

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Changes in Excise Rate


Heading/Sub
heading
2106.90.00
2106.90.20
2106.90.70
2202

2202.90.00
2203.00.00
2204
2204.10.00
2204.10.10
2204.10.20
2204.10.30
2204.21.00
2204.21.10
2204.21.20
2204.21.30
2204.29.00
2204.29.10
2204.29.20
2204.29.30
2204.29.40

Description of Product/Goods or
Service

Revised Rate
of Excise
Duty
Food preparations not elsewhere specified or included-others
Pan Masala without tobacco
Rs. 375 per kg Rs. 420 per
kg
Scented nut shell without tobacco
Rs. 138 per kg Rs. 155 per kg
Waters, including mineral waters and aerated waters, containing
added sugar or other sweetening matter or flavored, and other nonalcoholic beverages, not including fruit or vegetable juice of heading
20.09
Others
Rs. 6.50 per
Rs. 7 per liter
liter
Beer made from malt
Rs. 98 per
Rs 106 per
liter
liter
Wine of Fresh Grapes including
fortified wines; grapes must other
than that of heading 2009
Sparkling Wine
Wine containing not more than
Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
In container holding 2ltr or less
Wine containing not more than
Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
Others
Wine containing not more than
Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
Domestic wine containing not
Rs. 66 per
Rs. 74 per
more than 12% alcohol
liter
liter
Other grape must
18

Existing Rate
of Excise Duty

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2204.30.10
2204.30.20
2204.30.30
2205
2205.10.00
2205.10.10
2205.10.20
2205.10.30
2205.90.00
2205.90.10
2205.90.20
2205.90.30
2206.00.00
2206.00.10
2206.00.20
2206.00.30
2206.00.40
2206.00.90
2208.20.90
2208.20.90.10
2208.20.90.20

Wine containing not more than


Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
Vermouth and other wine of fresh grapes flavored with plants or
aromatic substance
In container containing 2 liter or
less
Wine containing not more than
Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
Others
Wine containing not more than
Rs. 250 per
Rs. 280 per
12% alcohol (on import)
liter
liter
Wine containing 12% to 17%
Rs. 250 per
Rs. 280 per
alcohol
liter
liter
Wine containing more than 17%
Rs. 290 per
Rs. 325 per
alcohol
liter
liter
Other fermented beverages, mixture of fermented beverages and
mixture of fermented beverages and nonalcoholic beverages, not
elsewhere specified or included
Country Beer
Rs. 20 per
Rs.22 per liter
liter
Champaign, Perry, Mead, foreign
Rs. 290 per
Rs 313 per
cider
liter
liter
Domestic Cider
Rs. 100 per
Rs. 108 per
liter
liter
Mixtures of fermented beverages
Rs. 290 per
Rs. 325 per
containing more than 17% alcohol liter
liter
Others
Rs. 290 per
Rs. 325 per
liter
liter
Spirits obtained by distilling grape wine or rape marc-others
Liquor with 15 UP capacity
Rs. 793 per
Rs. 912 per
containing 48.5% alcohol
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter

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Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2208.20.90.30

Liquor with 30 UP capacity


containing 39.94% alcohol

2208.30.90
2208.30.90.10

Whiskies- Others
Liquor with 15 UP capacity
containing 48.5% alcohol

2208.30.90.20
2208.30.90.30
2208.40.90
2208.40.90.10
2208.40.90.20
2208.40.90.30
2208.50.90
2208.50.90.10
2208.50.90.20
2208.50.90.30
2208.60.90
2208.60.90.10
2208.60.90.20
2208.60.90.30
2208.70.90

Rs. 551 per


liter, Rs 788
per LP liter

Rs. 634 per


liter, Rs 906
per LP liter

Rs. 793 per


Rs. 912 per
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 30 UP capacity
Rs. 551 per
Rs. 634 per
containing 39.94% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Rum and sprit extracted after fermentation of sugarcane productsOther
Liquor with 15 UP capacity
Rs. 793 per
Rs. 912 per
containing 48.5% alcohol
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 30 UP capacity
Rs. 551 per
Rs. 634 per
containing 39.94% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Gin and Geneva- others
Liquor with 15 UP capacity
Rs. 793 per
Rs. 912 per
containing 48.5% alcohol
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 30 UP capacity
Rs. 551 per
Rs. 634 per
containing 39.94% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Vodka- others
Liquor with 15 UP capacity
Rs. 793 per
Rs. 912 per
containing 48.5% alcohol
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 30 UP capacity
Rs. 551 per
Rs. 634 per
containing 39.94% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liqueurs and cordials-others
20

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2208.70.90.10

Liquor with 15 UP capacity


containing 48.5% alcohol

2208.70.90.20

Liquor with 25 UP capacity


containing 42.8% alcohol

2208.70.90.30

Liquor with 30 UP capacity


containing 39.94% alcohol

2208.90.00
2208.90.90.10

Other
Liquor with 15 UP capacity
containing 48.5% alcohol

2208.90.90.20
2208.90.90.30
2208.90.90.40
2208.90.90.50
2208.90.90.60
24.01
2401.10.00
2401.20.00
2401.30.00
24.02
2402.10.00
2402.20.00
2402.20.10
2402.20.21
2402.20.22
2402.20.23

Rs. 793 per


liter, Rs 933
per LP liter
Rs. 591 per
liter, Rs 788
per LP liter
Rs. 551 per
liter, Rs 788
per LP liter

Rs. 912 per


liter, Rs 1073
per LP liter
Rs. 680 per
liter, Rs 906
per LP liter
Rs. 634 per
liter, Rs 906
per LP liter

Rs. 793 per


Rs. 912 per
liter, Rs 933
liter, Rs 1073
per LP liter
per LP liter
Liquor with 25 UP capacity
Rs. 591 per
Rs. 680 per
containing 42.8% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 30 UP capacity
Rs. 551 per
Rs. 634 per
containing 39.94% alcohol
liter, Rs 788
liter, Rs 906
per LP liter
per LP liter
Liquor with 40 UP capacity
Rs. 279 per
Rs. 231 per
containing 34.23% alcohol
liter, Rs 465
liter, Rs 535
per LP liter
per LP liter
Liquor with 50 UP capacity
Rs. 115 per
Rs. 132 per
containing 28.53% alcohol
liter, Rs 230
liter, Rs 265
per LP liter
per LP liter
Liquor with 70 UP capacity
Rs. 24 per
Rs. 26 per
containing 17.12% alcohol
liter, Rs 80
liter, Rs 88
per LP liter
per LP liter
Unmanufactured tobacco; tobacco refuse
Tobacco, not stemmed/stripped
Rs. 60 per kg Rs. 67 per kg
Tobacco, partly or wholly
Rs. 60 per kg Rs. 67 per kg
steamed/stripped
Tobacco refuse
Rs. 60 per kg Rs. 67 per kg
Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco
substitutes
Cigars, cheroots and cigarillos,
Rs. 11 per
Rs. 12 per
containing tobacco
stick
stick
Cigarettes containing tobacco
Not Filtered
Rs. 320 per M Rs. 346 per M
Filtered
Filtered up to 70 m.m.
Rs. 723 per M Rs. 795 per M
Filtered 70 m.m. to 75 m.m
Rs. 931 per M Rs. 1024 per
M
Filtered 76 m.m. to 85 m.m
Rs. 1193 per
Rs. 1336 per
M
M
21

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2402.20.24

Filtered more than 85 m.m

2402.90.00
2402.90.10
2402.90.20

Others
Bidi
All types of Cigar

24.03
2403.19.10
2403.91.00
2403.99.10
2403.99.20
2403.99.23
8528.72.00
8528.72.10
8528.72.90
8529.10.90
8529.90.10

Rs. 1624 per


M

Rs. 1868 per


M

Rs. 75 per M
Rs. 84 per M
Rs. 11 per
Rs. 12 per
stick
stick
Other manufactured tobacco and manufactured tobacco
substitutes; homogenized or reconstituted tobacco; tobacco
extracts and Essences-Others
Pipe Tobacco
Rs. 900 per
Rs. 1008 per
kg
kg
Homogenized or reconstituted Rs. 205 per kg Rs. 230 per
tobacco
kg
Jarda, Khaini, Snuff, Ghutka and
Rs. 375 per kg Rs. 420 per
similar preparations containing
kg
chewing tobacco
Packed chewing tobacco, to be
Rs. 205 per kg Rs. 230 per
mixed in lime, put up for retail sale
kg
Cut tobacco, dust tobacco not for
Rs. 205 per kg Rs. 230 per
retail sale
kg
Reception apparatus for television, whether or not incorporating
radio-broadcast receivers or sound or video recording or
reproducing apparatus; Other, color:
Of unassembled condition
5%
10%
Other-television
5%
10%
Parts suitable for use solely or
principally with the apparatus of
headings 85.25 to 85.28
Of television receiver
15%
10%

22

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights
Income Tax Act 2058
Computation of Taxable Income
Section
Section 5
Taxable
Income

Existing Provision

Revised Provision

The taxable income of any person in


any income year shall be equal to
the amount computed by subtracting
the amount, if any, claimed pursuant
to Section 12, 12Ka or 63 from the
grand total amount of assessable
income of each of the following
income headings in that income
year:
Business
Employment
Investment

The taxable income of any person in


any income year shall be equal to the
amount computed by subtracting the
amount, if any, claimed pursuant to
Section 12, 12a, 12b or 63 from the
grand total amount of assessable
income of each of the following
income headings in that income year:
Business
Employment
Investment

Business Exemptions and Concession


Section
Existing Provision
Section 11(3g) Tax rebate shall be granted by
Ten percent on the tax exempt
on the manufacturing, tourism
service, hydropower generation,
distribution and distribution
industries enlisted in the stock
exchange and the entities set
forth in Section 11(3c).
Section
Section 11B

Revised Provision
Tax rebate shall be granted by
Fifteen percent on the tax
exempt on the manufacturing,
tourism
service,
hydropower
generation,
distribution
and
distribution industries enlisted in
the stock exchange and the entities
set forth in Section 11(3c).

Existing Provision

Revised Provision

In the case of hydro-power,


international airport, underground
ways, roadways, railways and
similar infrastructure development
projects of national importance and

In the case of hydro-power,


international
airport,
underground ways, roadways,
railways
and
similar
infrastructure
development
projects of national importance

23

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

the production industry employing


more than Three Hundred workers
and using more than Fifty percent
domestic raw material (other than
cigarette, alcoholic beverage and
beers), no source of income shall be
sought on the investment if it is
made up to last day of Chaitra 2075
B.S."

and the production industry


employing more than Three
Hundred workers and using more
than Fifty percent domestic raw
material (other than cigarette,
alcoholic beverage and beers,
bidi, cigar, khane surti, khaini,
gutkha and pana masala), no
source of income shall be sought
on the investment if it is made up
to last day of Chaitra 2075 B.S."

Special Provision to Merger or Acquisition of Business


Section
Existing Provision
Revised Provision
Section 47A (6) An entity (banking and financial An entity (banking and financial

institutions; insurance companies)


that intends to be disposed upon
being merger with same nature of
entity shall have to give a letter of
intent to be merged to the Inland
Revenue Department no later than
the last month of Asadh of the year
2073.

institutions;
insurance
companies) that intends to be
disposed upon being merger with
same nature of entity shall have
to give a letter of intent to be
merged to the Inland Revenue
Department no later than the last
month of Asadh of the year 2075.

Section
Existing Provision
Revised Provision
Section 47A (7) An entity (banking and financial An entity (banking and financial

institutions; insurance companies)


that intends to be disposed upon
being merger with same nature of
entity shall have to fulfill no later
than the last month of Asadh
2074.

24

institutions;
insurance
companies) that intends to be
disposed upon being merger with
same nature of entity shall have
to fulfill no later than the last
month of Asadh 2076.

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Provision of Final Withholding


Section
Existing Provision
Revised Provision
Section 92(1)(a) The following payment shall be The following payment shall be

treated as payment from which tax treated as payment from which


is withheld finally: tax is withheld finally: Dividend paid by a resident Dividend paid by a resident
company.
company and partnership
company.

Penalty to accomplice
Section
Existing Provision
Revised Provision
Section 127 Any person who intentionally aids Any person who intentionally

or abets or advises any other person


to commit any offense under this
Act shall be punished with half a
punishment imposed on the
offender.

aids or abets or advises any other


person to commit any offense or
certifies the false financial or
tax accounts or provides any
wrongful consultancy services
shall be punished with half a
punishment imposed on the
offender.

Social Security Fund


Existing Provision
1% Social Security Tax is levied on income
of natural person in income of 2,50,000
and 3,00,000 for single and couple
respectively. Such Tax shall be deposited
into Social Security Fund.

Revised Provision
1% Social Security Tax is levied on income
of 350,000 and 4,00,000 for single
and couple respectively. Such Tax shall be
deposited into Social Security Fund.

Additional Provisions in Income Tax Act 2058


1. Sec 88(1)(7): Withholding Tax
In making the payment of services related with Satellite, Bandwidth, Optical Fiber,
equipment relating to telecommunications or electric transmission cable, any
resident person shall withhold tax at the rate of Ten Percent.

25

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2. Sec 95 A (3): Additional Legal Provision


In the case of benefit from the disposal of interest of an entity not listed in the
Nepal Securities Board, Company Registrar shall record the updated data
only after receiving the payment of advance tax on amount of gain on
such disposal.
3. Sec 95 KA (6): Advance Tax Collection
In case any person other than natural person, disposes land and building, Land
Revenue Office shall collect advance tax on gain on such disposal at the rate of
Ten Percent (10%)

Exemption on Interest, Fees and Fines


Interest, Additional fees and Fines on delay deposit of following taxes and
submission of returns for the period Sharwan 2072 to Falgun 2072 are waived to
taxpayers only if they deposit the taxes and submit returns within Ashwin 2073:

Income Tax Return for FY 2071/72


Installment Tax Return for FY 2072/73
First Installment Tax of FY 2072/73
Withholding Tax Return
Value Added Tax(VAT) Amount and Return
Excise Duty and Excise Return
Health Tax
Education Tax
Cinema Development Charges and Return

26

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Income Tax Rates - Schedule I


1. Clause 1: Taxable Income of a Natural Person
If Assessed as Single
Fiscal Year 2072/73
Income slab
Rate of tax
First Rs. 250,000
1%
Next Rs. 100,000
15%
Above 350,000
25%
If
the
taxable 40% additional tax
income is above Rs on the tax amount
2,500,000
calculated
under
25% slab above
(applicable only in
the income above
2,500,000)
Provision of 10% exemption is made to
female employees.

Fiscal Year 2073/74


Income slab
Rate of tax
First Rs. 350,000
1%
Next Rs. 100,000
15%
Above 450,000
25%
If the taxable 40% additional tax
income is above on the tax amount
Rs 2,500,000
calculated
under
25% slab above
(applicable only in
the income above
2,500,000)
Provision of 10% exemption is made to
female employees.

If Assessed as Couple
Fiscal Year 2072/73
Income slab
Rate of tax
First Rs. 300,000
1%
Next Rs. 100,000
15%
Above 400,000
25%
If
the
taxable 40% additional tax
income is above Rs on the tax amount
2,500,000
calculated
under
25% slab above
(applicable only in
the income above
2,500,000)
Provision of 10% exemption to female is
not made to married female employees.

Fiscal Year 2073/74


Income slab
Rate of tax
First Rs. 400,000
1%
Next Rs. 100,000
15%
Above 500,000
25%
If the taxable 40% additional tax
income is above on the tax amount
Rs 2,500,000
calculated
under
25% slab above
(applicable only in
the income above
2,500,000)
Provision of 10% exemption to female is
not made to married female employees.

27

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2. Clause 17: Presumptive Tax


Particulars
FY 2072/73
For person transacting goods of cigarette and 0.5% of turnover
gas on the basis of minimum 3% commission
For businesses other than cigarettes and gas
1.5% of turnover
For person in service business
2% of turnover

28

FY 2073/74
0.25% of turnover
0.75% of turnover
2% of turnover

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights
Customs Act 2064

Section 51 (1): Punishment


Existing Provision
If any person commits or attempts to
commit export smuggling or import
smuggling of any goods or exports or
imports or attempts to export or import
any goods through any route other than
the route so prescribed under Section 3
that such goods are to be exported or
imported only through that route, the
Customs Officer may forfeit such
goods and impose a fine equal to the
amount in controversy of such goods or
imprisonment as follows or both
punishments:

Term of
Punishment
Not Exceeding 2
months
2-6 Months
4-12 Months
8-24 Months
1- 3 Years
2 - 5 Years

Amount in
Controversy (NPR)
25,000-100,000
0.10 - 0.50 Million
0.50 - 2.5 Million
2.5 - 5 Million
5 - 10 Million
> 10 Million

Revised Provision
If any person commits or attempts to
commit export smuggling or import
smuggling of any goods or exports or
imports or attempts to export or import
any goods through any route other than
the route so prescribed under Section 3
that such goods are to be exported or
imported only through that route, the
Customs Officer may forfeit such
goods if amount of controversy is
Rs. up to 1 crore and the district
court may forfeit such goods if
amount of controversy is more
than 1crore, and impose a fine equal to
the amount in controversy of such goods
or imprisonment as follows or both
punishments:
Term of
Amount in
Punishment
Controversy (NPR)
Not Exceeding 1
month
1 - 2.5 Million
1-3 Months
2.5 - 5 Million
3-12 Months
5 - 10 Million
1- 2 Years
10 - 30 Million
2-5 Years
> 30 Million

29

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Additional Provisions
1. Section 88 A : Confidentiality
No person shall disclose any information regarding valuation of custom duty and
personal information submitted by importer or exporter. Notwithstanding anything
contained in this section, such information may be disclosed in following
circumstances:
During Investigation by Competent Authority
During the process of Audit,
If necessary in legal proceedings

2. Section 89 B: Identification Number


Importer and Exporter shall apply for import and export identification number for
the purpose of import and export respectively as notified by Customs Department.

30

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Increase in Custom Tariff

Heading
9.01

22.03
22.04

22.05

22.08

Sub
heading

Description of Product/Goods
or Service
Coffee, whether or not
roasted or decaffeinated;
coffee husks and skins;
coffee substitutes
containing coffee in any
proportion
0901.11.00 Not decaffeinated
0901.12.00 -Decaffeinated
Beer made from malt.
2203.00.00 Beer made from malt.
Wine of fresh grapes,
including fortified wines;
grape must other than that
of Heading 20.09.
2204.10.00 Sparkling wine
Other wine; grape must
with fermentation
prevented or arrested by
the addition of alcohol
2204.21.00 In container containing 2 ltr or
less
2204.29.00 Others
2204.30.00 Other grape must
Vermouth and other wine
of fresh grapes flavored
with plants or aromatic
substances.
2205.10.00 In containers holding 2 L or
less
2205.90.00 Other
Undenatured ethyl alcohol
of an alcoholic strength by
volume of less than 80%
vol; spirits, liqueurs and
other spirituous beverages
2208.20.10 All kinds of alcoholic fluids
including spirits used as raw
material of wine or brandy
2208.20.90 Other
Whiskies
2208.30.10 Alcoholic fluids including
spirits used as raw materials of
whisky
2208.30.90 Other

31

Existing Tariff

Revised Tariff

10%
10%

20%
20%

Rs. 125 per Ltr.

Rs. 165 per Ltr.

Rs. 180 per Ltr.

Rs. 240 per Ltr.

Rs. 180 per Ltr.

Rs. 240 per Ltr.

Rs. 180 per Ltr.


Rs. 180 per Ltr.

Rs. 240 per Ltr.


Rs. 240 per Ltr.

Rs. 180 per Ltr.

Rs. 240 per Ltr.

Rs. 180 per Ltr.

Rs. 240 per Ltr.

Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr


Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

2208.40.10

2208.40.90
2208.50.10
2208.50.90
2208.60.10
2208.60.90
2208.70.10
2208.70.90
27.1

2710.19.60
27.16

49.07

3921.90.00
3921.90.10
3921.90.90
4907.00.00

Rum and other spirits


obtained by distilling
fermented sugar-cane
products:
Alcoholic fluids including
spirits used as raw materials of
Rum and other spirits obtained
by distilling fermented sugarcane products
Other
Gin and Geneva
Alcoholic fluids including
spirits used as raw materials of
Gin and Geneva
Other
Vodka
Alcoholic fluids including
spirits used as raw materials of
Vodka
Other
Liqueurs and cordials
Alcoholic fluids including
spirits used as raw materials of
Liqueurs and cordials
Other
Petroleum oils and oils
obtained from bituminous
minerals, other than
crude; preparations not
elsewhere specified or
included, containing by
weight 70% or more of
petroleum oils or of oils
obtained from bituminous
minerals, these oils being
the basic constituents of
the preparation; waste oils.
Others
Base Oil (Use for making
mobile
Electrical energy. (Optional
Heading)
Others
Printed
Others
Unused postage, revenue
or similar stamps of
current or new issue in the
country in which they have,
or will have, a recognised
32

Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr


Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr


Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr


Rs. 700 per Ltr

Rs. 900 per Ltr

Rs. 1200 per Ltr Rs. 1600 per Ltr

15%

30%

15%

10%

20%
15%
15%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

face value; stampimpressed paper; bank


Notes; cheque forms;
stock, share or bond
certificates and similar
documents of title.

Decrease in Custom Tariff

Heading

Sub heading

5.11

0511.99.10
25.01

2501.00.90
2716.00.00
30.02

3002.90.10
30.06
3006.10.00

Description of Product/Goods or Service


Animal products not elsewhere
specified or included; dead animals
of Chapter 1 or 3, unfit for human
consumption.
Eggs of silk worm
Salt (including table salt and
denatured salt) and pure sodium
chloride, whether or not in aqueous
solution or containing added
anticaking or free-flowing agents;
sea water
-Other
Electrical energy. (Optional Heading)
Human blood; animal blood
prepared for therapeutic,
prophylactic or diagnostic uses;
antisera, other blood fractions and
immunological products, whether or
not modified or obtained by means
of biotechnological processes;
vaccines, toxins, cultures of microorganisms (excluding yeasts) and
similar products.
Others
Diagnostic Kits
Pharmaceutical goods specified in
Note 4 to this Chapter
Sterile surgical catgut, similar sterile
suture materials (including sterile
absorbable surgical or dental yarns) and
sterile tissue adhesives for surgical wound
closure; sterile laminaria and sterile
laminaria tents; sterile absorbable surgical
or dental haemostatics; sterile surgical or

33

Existing
Tariff

Revised
Tariff

5%

Nil

5%
15%

Nil
Nil

10%

5%

10%

5%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

3006.20.00
3006.30.00
31.01

3101.00.00

31.02
3102.10.00

3102.21.00
3102.29.00
3102.30.00
3102.40.00
3102.50.00
3102.60.00
3102.80.00
3102.90.00
31.03
3103.10.00
3103.90.00
31.04
3104.20.00
3104.30.00
3104.90.00
31.05

dental adhesion barriers, whether or not


absorbable
Blood grouping reagents
Opacifying preparations for X-ray
examinations; diagnostic reagents
designed to be administered to the patient
Animal or vegetable fertilisers,
whether or not mixed together or
chemically treated; fertilisers
produced by the mixing or chemical
treatment of animal or vegetable
products.
Mineral or chemical fertilisers,
nitrogenous.
Urea, whether or not in aqueous solution
Ammonium sulphate; double salts
and mixtures of ammonium
sulphate and ammonium nitrate:
Ammonium sulphate
Other
Ammonium nitrate, whether or not in
aqueous solution
Mixtures of ammonium nitrate with
calcium carbonate or other inorganic nonfertilizing substances
Sodium nitrate
Double salts and mixtures of calcium
nitrate and ammonium nitrate
Mixtures of urea and ammonium nitrate in
aqueous or ammoniacal solution
Other including mixtures not specified in
the foregoing Sub-headings
Mineral or chemical fertilisers,
phosphatic.
Superphosphates
Other
Mineral or chemical fertilisers,
potassic
-Potassium chloride
Potassium sulphate
-Other
Mineral or chemical fertilizers
containing two or three of the
fertilising elements nitrogen,
phosphorus and potassium; other
fertilisers; goods of this Chapter in
tablets or similar forms or in
packages of a gross weight not
exceeding 10 kg
34

10%
10%

5%
5%

20%

Nil

20%

Nil

20%
20%
20%

Nil
Nil
Nil

20%

Nil

20%
20%

Nil
Nil

20%

Nil

20%

Nil

20%
20%

Nil
Nil

20%
20%
20%

Nil
Nil
Nil

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

3105.10.00
3105.20.00
3105.30.00
3105.40.00

3105.51.00
3105.59.00
3105.60.00

38.22

3105.90.00
3822.00.00

39.18

3918.10.10
39.2

3920.99.00
3920.99.10
3920.99.90
39.21
39.26

3926.90.10

Goods of this Chapter in tablets or similar


forms or in packages of a gross weight not
exceeding 10 kg
Mineral or chemical fertilizers containing
the three fertilizing elements nitrogen,
phosphorus and potassium
Diammonium hydrogen orthophosphate
(diammonium phosphate)
Ammonium dihydrogen orthophosphate
(monoam-monium phosphate) and
mixtures thereof with diammonium
hydrogen orthophosphate (diammonium
phosphate) 9.5 20 -Other mineral or
chemical fertilizers containing the two
fertilizing elements nitrogen and
phosphorus:
-Containing nitrates and phosphates
Other
-Mineral or chemical fertilizers containing
the two fertilizing elements phosphorus
and potassium
Other
Diagnostic or laboratory reagents on
a backing, prepared diagnostic or
laboratory reagents whether or not
on a backing, other than those of
Heading 30.02 or 30.06; certified
reference materials.
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:
-Roffing sheets, Roffing tiles
Other plates, sheets, film, foil and
strip, of plastics, non-cellular and
not reinforced, laminated,
supported or similarly combined
with other materials.
Of other plastic
Printed
Others
Other plates, sheets, film, foil and
strip, of plastics.
Other articles of plastics and articles
of other materials of Headings 39.01
to 39.14
Other:
Bangles, Tika, Tikuli and Beads
35

20%

Nil

20%

Nil

20%

Nil

20%

Nil

20%
20%
20%

Nil
Nil
Nil

20%
10%

Nil
5%

30%

15%

15%
20%
15%

5%

Nil

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

40.14

49.01

49.02

49.03
49.04
49.1

50.01
51.01

51.08

51.09

Hygienic or pharmaceutical articles


(including teats), of valcanised
rubber other than hard rubber, with
or without fittings of hard rubber
4014.10.00
-Sheath contraceptives
Printed books, brochures, leaflets
and similar printed matter, whether
or not in single sheets
4901.10.00
-In single sheets, whether or not folded
4901.91.00
-Dictionaries and encyclopedias, and serial
instalments thereof
4901.99.00
--Other
Newspapers, journals and
periodicals, whether or not
illustrated or containing advertising
material
4902.10.00
Appearing at least four times a week
4902.90.00
Other
4903.00.00 Children's picture, drawing or
coloring books.
4904.00.00
Music, printed or in manuscript,
whether or not bound or illustrated.
4910.00.00 Calendars of any kind, printed,
including calendar blocks.
4910.00.10
Traditional calendars
4910.00.90
Others
5001.00.00
Silk-worm cocoons suitable for reeling
Wool, not carded or combed
Greasy, including fleece-washed
wool
5101.11.00
Shorn wool
5101.19.00
Other
Degrased, not carbonised:
5101.21.00
--Shorn wool
5101.29.00
-Other
5101.30.00
-Carbonised
Yarn of fine animal hair (carded or
combed), not put up for retail sale.
5108.10.00 -Carded
5108.10.10
Kashmiri Yarn
5108.10.90
Others
5108.20.00 Combed
5108.20.10
Kashmiri Yarn
5108.20.90
Others
Yarn of wool or of fine animal hair,
put up for retail sale.
5109.10.00 Containing 85 % or more by weight
of wool or of fine animal hair
5109.10.10
Kashmiri Yarn
36

5%

Nil

5%
5%

Nil
Nil

5%

Nil

5%
5%
5%

Nil
Nil
Nil

10%

Nil

20%

5%

Nil
20%
Nil

5%
5%

Nil
Nil

5%
5%
5%

Nil
Nil
Nil

5%
1%
5%
5%
1%
5%
5%
1%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

5109.10.90
5109.90.00

52.01
52.02

5201.00.00
5202.10.00

52.03
52.05

5202.91.00
5202.99.00
5203.00.00

52.07
5207.10.00
66.02

6602.00.00
6602.00.10
6602.00.90

70.18

7018.10.10
71.01

7101.10.00
7101.21.00
7101.22.00
71.02
71.03

Others
Other
Kashmiri Yarn
Others
Cotton, not carded or combed
Cotton waste (including yarn waste
and garneted stock).
Yarn waste
Other
Garneted stock
Other
Cotton, carded or combed.
Cotton yarn (other than sewing
thread), containing 85% or more by
weight of cotton, not put up for retail
sale
Cotton yarn (other than sewing
thread) put up for retail sale
Containing 85% or more by weight of
cotton
Walking-sticks, seat-sticks, whips, riding
crops and the like
Stick used by blind people
Others
Glass beads, imitation pearls, imitation
precious or semi-precious stones and
similar glass small wares, and articles
thereof other than imitation jewelry; glass
eyes other than prosthetic articles;
statuettes and other ornaments of lamp
worked glass, other than imitation jewelry;
glass microspheres not exceeding 1 mm in
diameter.
Bangles, Tika Tikuli & beads
Pearls, natural or cultured, whether
or not worked or graded but not
strung, mounted or set; pearls,
natural or cultured, temporarily
strung for convenience of transport
Natural pearls
-Cultured pearls:
-Unworked
Worked
Diamonds, whether or not worked,
but not mounted or set.
Precious stones (other than
diamonds) and semi-precious
stones, whether or not worked or
graded but not strung, mounted or
37

5%
5%

10%

1%
5%
Nil

15%

Nil

15%
15%
15%
5%

Nil
Nil
Nil
1%

5%

1%

5%
Nil
5%

5%

Nil

5%

1%

5%
5%
5%

1%
1%
1%

5%

1%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

71.04

71.06

71.13
7113.19.00
82.01

8201.10.00
8201.10.10
8201.10.90
8201.50.00
8201.90.00
8201.90.10
8201.90.90
84.13
8413.70.00
8413.70.11
8413.70.90
84.24

set; ungraded precious stones (other


than diamonds) and semi-precious
stones, temporarily strung for
convenience of transport
Synthetic or reconstructed precious or
semiprecious stones, whether or not
worked or graded but not strung, mounted
or set; ungraded synthetic or reconstructed
precious or semi-precious stones,
temporarily strung for convenience of
transport
Silver (including silver plated with
gold or platinum), unwrought or in
semi manufactured forms, or in
powder form.
Articles of jewelry and parts thereof,
of precious metal or of metal clad
with precious metal.
other precious metal, whether or not
plated or clad with precious metal
Hand tools, the following: spades,
shovels, mattocks, picks, hoes, forks
and rakes; axes, bill hooks and
similar hewing tools; secateurs and
pruners of any kind; scythes, sickles,
hay knives, hedge shears, timber
wedges and other tools of a kind
used in agriculture, horticulture or
forestry.
Spades and shovels
Spades
Other
-Secateurs and similar one handed pruners
and shears (Including poultry shears)
Other hand tools of a kind used in
agriculture, horticulture or forestry
Hands tools of a kind used in agriculture,
horticulture or forestry
Others
Pumps for liquids, whether or not
fitted with a measuring device;
liquid elevators.
Other centrifugal pumps
2-8hp capacity
Others
Mechanical appliances (whether or
not hand operated) for projecting,
dispersing or spraying liquids or
powders; fire extinguishers, whether
or not charged; spray guns and
38

5%

1%

30%

15%

5%

5%

1%
5%
1%

5%
1%
5%

15%
1%
15%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

8424.81.00
84.32
84.33

84.34
84.35
84.36

84.37

84.38

8438.50.00
8438.60.00
8438.80.10
84.52

85.02
8502.11.00
8502.11.10

similar appliances; steam or sand


blasting machines and similar jet
projecting machines.
Other Agricultural or horticulture
Agricultural, horticultural or forestry
machinery for soil preparation or
cultivation; lawn or sports-ground rollers.
Harvesting or threshing machinery,
including straw or fodder balers; grass or
hay mowers; machines for cleaning,
sorting or grading eggs, fruit or other
agricultural produce, other than machinery
of Heading 84.37.
Milking machines and dairy machinery.
Presses, crushers and similar machinery
used in the manufacture of wine, cider,
fruit juices or similar beverages
Other agricultural, horticultural, forestry,
poultry-keeping or bee-keeping machinery,
including germination plant fitted with
mechanical or thermal equipment; poultry
incubators and brooders.
Machines for cleaning, sorting or grading
seed, grain or dried leguminous vegetables;
machinery used in the milling industry or
for the working of cereals or dried
leguminous vegetables, other than farmtype machinery
Machinery, not specified or included
elsewhere in this Chapter for the
industrial preparation or
manufacture of food or drink, other
than machinery for the extraction or
preparation of animal or fixed
vegetable fats or oils.
Machinery for the preparation of meat or
poultry
Machinery for the preparation of fruits,
nuts or vegetables
Tea shorting Machine, C.T.C.Machine, Tea
formenting Machine, Tea Drier Machine,
L.T.P. Machine
Sewing machines, other than book- sewing
machines of Heading 84.40; furniture,
bases and covers specially designed for
sewing machines; sewing machine needles.
Electric generating sets and rotary
converters.
output not exceeding 75 kVA
output up to 12.5 kVA
39

5%
5%

1%
1%

5%

1%

5%
5%

1%
1%

5%

1%

5%

1%

5%

1%

5%

1%

5%

1%

5%

1%

15%
15%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

8502.11.90
8502.11.12
8502.11.13
85.28

8528.72.10
87.01
8701.10.10
8701.10.90
87.02
8702.90.10
8702.90.11
8702.90.19
8702.90.20
8702.90.21
8702.90.29
8702.90.30
8702.90.31
8702.90.39
8702.90.90
8702.90.91
8702.90.99
87.03

8703.90.11
8703.90.19
8703.90.90
87.04
8704.22.90

Others
Of an output exceeding 75 kVA but not
exceeding 375 kVA
Of an output exceeding 375 kVA
Monitors and projectors, not
incorporating television reception
apparatus; reception apparatus for
television, whether or not
incorporating radio-broadcast
receivers or sound or video
recording or reproducing apparatus.
-Other, color
Of unassembled condition
Others
Tractors (other than tractors of
87.09)
Power trailers, Mini trailers
Others
Motor vehicles for the transport of
ten or more persons, including the
driver
Buses (with a capacity more than 25
seats)
Electrically operated
Others
Mini Buses (with a capacity 15- 25
seats)
Electrically operated
Others
Microbuses (with a capacity 11- 24
seats)
Electrically operated
Others
Jeep, Car and Van
Electrically operated
Others
Motor cars and other motor vehicles
principally designed for the
transports of persons (other than
those of Heading 87.02), including
station wagons and racing cars
Electrically operated
Three Wheelers
Other
Others
Motor vehicles for the transport of
goods
Exceeding 5 tons but not exceeding 20
tons-others
40

15%

1%
1%

15%

1%

30%
30%

20%
20%

5%
5%

1%
1%

30%
1%
30%
30%
1%
30%
30%
1%
30%
80%
10%
80%

30%
80%
80%
30%

10%
10%
80%

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

8704.22.91
8704.22.92
8704.22.93
8704.22.99
8704.90.00
8704.90.10
8704.90.90
87.05

8705.30.00
87.11
8711.90.00
8711.90.10
8711.90.90
87.13
8713.10.00
89.03
8903.91.00
90.21

9021.10.00
9021.31.00
9021.39.00
9021.40.00

Tank attached with chassis specially


designed for transportation of Milk
Container truck attached with chassis
Others
Others
with refrigerating system
Others
Special 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).
Fire fighting vehicles
Motorcycles (including mopeds) and
cycles fitted with an auxiliary
Others
Electrically operated
Others
Carriages for disabled persons,
whether or not motorized or
otherwise mechanically propelled
Not mechanically propelled
Yachts and other vessels for pleasure
or sports; rowing boats and canoes.
Yachts and other vessels for pleasure or
sports; rowing boats and canoes.
Orthopedic appliances, including
crutches, surgical belts and trusses;
splints and other fracture
appliances; artificial parts of the
body; hearing aids and other
appliances which are worn or
carried, or implanted in the body, to
compensate for a defect or disability.
Orthopedic or fracture appliances
Other artificial parts of the body
Artificial joints
Other
Hearing aids, excluding parts and
accessories

41

1%
10%
10%
30%
30%
1%
30%

10%

1%

30%
10%
30%

5%

Nil

15%

1%

5%

Nil

5%
5%
5%

Nil
Nil
Nil

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

Change in Valuation Method

Heading

SubHeading

7108.11.00

Description of Product/Goods or
Service
Undenatured ethyl alcohol of an
alcoholic strength by volume of
80% vol. or higher; ethyl alcohol
and other spirits, denatured, of
any strength.
-Undenatured ethyl alcohol of an
alcoholic strength by volume of 80%
vol. or higher
Ethyl alcohol and other spirits,
denatured, of any strength
Powder
Others
Unwrought
Semi-manufactured
Gold (including gold plated with
platinum) unwrought or in semimanufactured forms, or in
powder form
Non-Monetary
Powder

7108.12.00

Other unwrought forms

5%

7108.13.00

Other semi-manufactured forms

5%

7108.20.00

Monetary

5%

22.07

2207.10.00
2207.20.00
7106.10.00
7106.91.00
7106.92.00
71.08

42

Existing
Tariff

Revised Tariff

30%

Rs. 30 per Ltr

30%

Rs. 30 per Ltr

5%

Rs. 56 per 10g

5%
5%

Rs. 56 per 10g


Rs. 56 per 10g

5%

Rs. 4200 per


10g
Rs. 4200 per
10g
Rs. 4200 per
10g
Rs. 4200 per
10g

Nepal Budget for Fiscal Year 2016/17


Amendment Highlights

For Further Consultation, Please Contact:


LDSA Associates,
Chartered Accountants

LD Mahat
Managing Partner

64 Bishal Basti Ka, Bishal Nagar,


Kathmandu, Nepal

Tel: +977 (1) 442 0810


Email: ld.mahat@cscpl.com.np

Tel: +977 (1) 442 0807/ 08/ 10


Fax: +977 (1) 444 0528
Website: www.ldsaa.com

Isha Shrestha
Deputy Manager

Email: ldsa@cscpl.com.np

Email: isha.shrestha@cscpl.com.np

Disclaimer: The information contained in this document is compiled by LDSA Associates


solely for the information of its clients and staffs. LDSA will not be responsible for any
decision taken on the basis of matters contained herein.

43

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