August 28, Kathmandu. The government has brought attractive packages to attract new investment in the tourism industry. With an investment of more than Rs 5 billion, the tourism-related industries and international airlines will be fully exempted from income tax for 15 years from the date of commencement of business.
Similarly, companies investing more than Rs 3 billion will be given full income tax exemption for 10 years from the date of commencement of business by the government. For the next five years, only 50 percent income tax will be paid.
The government has made such provision by amending the Income Tax Act 2058. Companies established with a capital investment of over Rs 1 billion will be fully exempted from income tax for five years from the date of commencement of business. For the next three years, only 25 percent income tax will be paid. The government has come up with a discount scheme to attract large investments at a time when new investors in tourism are fearful of the corona virus epidemic.
Industries providing more than 100 jobs in Karnali will also get 15 years exemption
The industries that provide employment to at least 100 Nepali citizens by bringing any industry including tourism into operation in Karnali state will get full exemption from income tax for 15 years. Finance Minister Janardan Sharma said that the country’s poverty would not be eradicated unless poverty was eradicated from Karnali and Province 2.
The government has also given exemptions and concessions in the health sector by amending the Income Tax Act. The industries that produce health vaccines, oxygen gas and sanitary pads have been given 100 percent exemption in income tax for three years from the date of commencement of production. In the next two years, only 50 percent income tax will be paid.