Rs 53 billion tax exemption on goods worth Rs 408 billion

Kathmandu. 9th of the current fiscal year. v. In the six months of 2082/830, the government has given tax exemption on customs duty equivalent to about Rs 53 billion. According to the Ministry of Finance, the government has given duty exemption of Rs 52.84 billion on the import of goods worth Rs 408 billion.

According to the Ministry, tax exemption of Rs 216.02 billion has been given on imported goods worth Rs 216.02 billion by invoking Section 5 (3) of the Value Added Tax Act, 2052.

Based on Section 9 of the Customs Act, 2064, the government has exempted customs duty of Rs 482.9 crore on goods worth Rs 597.5 million imported under diplomatic convenience. Using the Customs Act, the government has given tax exemption of Rs 4.21 crore on the import of goods worth Rs 80.8 million in the name of duty facility.

The government has provided Rs 9.50 billion tax exemption on goods worth Rs 37.54 billion owned by non-profit public and community organizations, the government and government-owned institutions. According to the details made public by the Ministry of Finance, the government has given tax exemption of Rs 14.97 billion on goods worth Rs 39.92 billion imported in the name of contractors appointed by the project or project under the project development agreement with the government.

Similarly, the government has given tax exemption of Rs 27.69 billion on goods imported under the SAFTA facility in the first six months of the current fiscal year. According to the Ministry of Finance, the government has given tax exemption worth Rs 17.40 billion on goods worth Rs 140.78 billion.

The government does not seem to have given much tax exemption to the internal revenue during the review period compared to the customs duty. According to the Finance Act, 2082 on behalf of the Inland Revenue Department, tax exemption and concession of Rs 555.76 million has been provided to 3,477 taxpayers.

The government has been providing more than a billion tax exemptions annually. Questions have also been raised about such tax exemptions. The report submitted by the High Level Economic Reform Commission led by the current Finance Minister Rameshwor Khanal had raised serious questions about the tax exemption.