CHANGES IN RATE OF TAXES FOR 2083

 

Effective from श्रावण ( shrawan)1, 2083  Nepal has started it's new fiscal policy  . There is a huge changes in the current tax slab rate of the fiscal year comparing to the tax last slab rates . There is a huge different in the tax rate for the low level income . 

As we can see that the basic exemption level is increase by 5 lacs for individual and 4 lacs for couples .

and the tax rate of above amounts has been significantly decreased from the prior one's . The maximum rate of tax is 29% in the current policy whereas the prior one it contains the highest rate of 39% . The number of slabs in the new policy is also decreased compared to the prior . This policy only contains 5 slabs whereas the prior one has 6 slabs , the new policy has become much simpler and convenient

as it contain less slabs .  

We can analyze the different positive outcomes from the current policy as ;

1)Increased tax-free income limit.

2)Reduced tax liability.

3)Higher disposable income.

4)Greater investment and savings.

5)Simplified tax system.

6)Better tax compliance.

7)Positive impact on economic growth.

As there are also negative outcomes also which can be listed as ;

1)Decrease in government revenue.

2)Possible increase in fiscal deficit.

3)Greater tax benefits for high-income earners.

4)Potential increase in dependence on indirect taxes.

5)Reduced government spending capacity

6)Uncertain effect on economic growth.