Hamro Party will simplify Nepal’s tax policy to encourage entrepreneurship and boost tax collection. Here is our tax policy highlight.
- Personal Income Tax: We will introduce a flat income tax policy mandating everyone in the nation to pay 10% of their gross earning irrespective of their earning level.
- Capital Gains Tax: For capital appreciation or gain achieved in an investment period longer than two years, the capital gains tax will be 5% and for an investment period less than two years, the tax will be 10%.
- Corporate Income Tax: We will make the corporate income tax policy fully transparent by simplifying tax codes and fixing the corporate income tax at a flat rate of 10%. We encourage companies to reinvest and to spend revenue on employees to increase productivity.
- Sales Tax: We will terminate the current Value Added Tax (VAT) system and introduce universally accepted and fair sales tax system applicable to every transaction other than groceries, clothes and health related items. The Sales tax, which Hamro Party will cap at 5 percent, will be decided by state governments. A list of goods that will be exempted from the sales tax will be published for consumers’ benefit.
- Import Tax: There will be no import tax on raw materials used to promote green industry and on materials used to promote education.
- Property Tax: Local governments will decide the property tax rate. We believe this tax should not discourage people from owning property, but should encourage people to not leave land unused.