Economic Indicators Improving, But Challenges Remain: Finance Minister

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that Nepal’s economy is improving, but challenges are still present. He shared this while presenting a proposal in Parliament on Sunday to begin discussions on the budget for the upcoming fiscal year 2082/83.

According to Finance Minister Paudel, although the country’s economic indicators show positive signs, Nepal has not yet been able to fully overcome the structural problems and the negative impacts caused by weaknesses in the past. He mentioned that these problems are still affecting the country’s economic growth. To address them, the government has introduced different policies and programs through this year’s budget.

One of the main features of the budget is special support for industries that use information technology and for the tourism sector, including hotels and resorts. Finance Minister Paudel said that these businesses will be treated as special industries. Because of this, they will get discounts on income tax as well as on electricity fees.

In addition, the budget has also included a provision for people living in Nepal who provide IT services to foreign countries. Their income will now be taxed at only 5 percent, and that tax will be considered the final tax they have to pay.