Budget Highlights Live 2077-78

Here is the list of highlights of budget 2077/78.

Per capita Income will be 1,388 US Dollar.

Other Sector Highlights

1. Establishment of Health desk & quarantine checks at international borders.
2. 40% of Population of every VDC will be provided by Health Insurance.Rs. 5Lakh of free health insurance for health workers.
3. Industries will be provided 50% rebate in electricity during lockdown.
4. 50% of premium to be subsidized by government on Group CORONA insurance.
5. 5 lakh insurance for all Health workers.
6. Increase in Import by12.9 % at current fiscal year.
7. Tax revenue collection will be  upto 8 kharba 27 arba.
8. Allocation of budget to Social security fund upto 67 arba 50 crore.
9. Allocation upto 9 arba 57 crore to special subsidy.
10. Allocation of 6 arba for CORONA examination and treatment.
11. Special Priority to Ayurvedic development.
12. Priority to Organic Agriculture.
13. Subsidy of 95 crore to sugarcane production
14. Krishan Credit card to be introduced.
15. Increase of Employment of 40,000 through Sana Kishan Loan.
16. Introduction of Bhumi bank.
17. Allocation of 50 crore for investment in share of bhumi bank.
18. Assessment of possibility of establishment of Tourism School or college.
19. After CORONA, encouragement to government & private sector employee for domestic tourism.
20. Development of Exhibition center at Brhikuti Mandup and other areas.
21. Allocation of 2 arba for Sunkoshi project.
22. Allocation of 10 arba to Mahakali Sichai Project.
23. Allocation of 1 arba 31 crore to Irrigation.
24. Closure of Melamchi project within upcoming fiscal year.
25. Establishment of Rastriya Rog Nidan Kendra.
26. Allocation of 2 arba and 36 crore to youth & Sports.
27. Encouragement to Banks for merger.
28. Introduction of Ghumti Bima.
29. Allocation of 7 arba 50 crore for health insurance of all citizens within 3 years
30. Secondary market to be made electronic.
31. Free education upto secondary school.
32. Allocation of 1 kharba 71 arba 71 crore to education sector.
33. Virtual class, Online school to be established for minimizing effect of CORONA.
34. Allocation of 2 arba for scholarship.
35. Allocation of 1 arba 82 crore for sanitary pads to 13.40 lakh female student.
36. Establishment of Sahid Park at various locations.
37. Encouragement of Online services of Malpot at every District.
38. Allocation of 4 arba to gramin bidhyutikaran.
39. Allocation of 12 arba to Purba Paschim highway.
40. Allocation of 6 arba 42 crore  for construction of Subway and underpass.
41. Allocation of around 8 arba and 66 kharba for railway sector(research project & initiation of railway construction).
42. Allocation of 5 arba for construction of Kalopatra sadak.
43. Allocation of 5 arba 2 crore for construction of Jhulunge pull.
44. Establishment of Rastriya Gyan Park at Khumaltar, Lalitpur.
45. Allocation of budget for Madan Bhandari Bigyan Prabidhi Prathistan.
46. Updation of 1 crore Nepali citizen details at digitial system within 3 years.
47. Free Corona Insurance upto 1 lakh to government employee.
48. Expansion of Broadband Internet service to all over Nepal within 2 years.

Tax Hghlights

1. Exemption of excise duty for raw material of Ethanol used in Sanitizer & PPE.
2. Rebate of  75 % for doing 0- 20 lakh trasactions, 50% for doing 20 -50 lakh transaction & 25% for doing 50 lakh  to 1 crore transaction  for laghu,gharelu thatha syana udhyogi ra bebasayi.
3. VAT not applicable for Micro Insurance.
4. Reduction of tax at the rate of 20%  for COVID-19 effected business such as Air services, Transportation service, Hotel sector, Travel & Trekking on income calculated for Fiscal year 2076-77.
5. VAT filing and its payment of tourism, Transport & Film house businesses shall be done quad monthly (4 months).
6. Exemption on VAT on the raw materials imported by pharmaceutical industry from the F.Y. 2077-78 and Refund of VAT paid on such raw material if purchased from domestic industry.
7. Reduction of custom duties on raw material of ayurvedic medicine.
8. Exemption of telecom service fees on 50% of repair & maintenance fees to Internet service providers on providing fixed broad band service.
9. Reduction  to 1% from existing 2% service fees on transaction amount for Radio and television broadcasting entities which produce and broadcast  self made and owned programs.
10. No change in VAT rates.
11. Increase of health risk tax in cigarettes, Cigar, Gutka & Pan Masala.
12. Increase in custom duties on petroleum products except Air fuel & LP gas & gold and gold ornaments.
13. Application of Excise duty on import of all kinds of furniture.
14. Non applicability of income tax on upavokta samuha working on its objective on Drinking water and sanitation.
15. 100% exemption on Income tax for cooperatives operating in rural municipality.
16. Applicable income tax rate on cooperatives operating at Municipality, sub metropolitan & Metropolitan are 5%, 7% and 10% respectively.
17. Exemption of tax on retirement payment on transfer of fund at approved retirement funds to Social security fund upto Chaitra end, 2077.

For more updates, visit https://mof.gov.np/

For budget highlights of F/ Y 2076/77, click here:- https://camunchnepal.com/articles/finance/budget-amendments/