Government changes tax rate on import of various goods

KATHMANDU: The government has provided concession on customs tariffs on the import of various goods. The Ministry of Finance has informed through a notice in the Nepal Gazette that the rate of the tax on the import of various goods has been changed. As per the new provision, 90% concession is provided on the customs tariff on the import of crude soybean oil, palm oil and sunflower oil. Revenue Secretary Rameshwor Dangal said the industries which were given 50% concession on the import of sunflower seeds for extracting sunflower oil before this will instead be given 90% concession. This new provision also applies to the import of soybean seeds for the production of oil and oilcake from it. Before this, the industries importing soybean seeds for this purpose were given 50% concession on import of soybean seeds and now they will get 90% concession. Similarly, 90% concession is provided on customs tariff on the import of mustard, spinach, rapeseed and canola seeds. A 15% customs tariff has been imposed on the import of spring steel wire that industries producing optical fibre cable use as raw material. Recommending for the concessions under this section should be made on the basis of the production capacity of the industry and the annual quantity of consumption. The provision of the imposition of 15% income tax on transactions, except those enjoying tax concessions, carried out within the metropolitan city area and of 7% within the then municipality area by the cooperatives, has been removed. As per the new provision, cooperatives operating within the municipality area will get 5% concession, those operating within the sub-metropolitan city area will get 7% concession and those running within the metropolitan area will be given 10% concession on income tax. Likewise, arrangements have been made for keeping the customs tariff of wire and iron rods only at 5%. The excise duty on the import of raw materials for sanitary pads has been removed now. READ ALSO:

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