Review of new Budget and Tax Slab for Fiscal Year 2018-2019:
The new budget has been introduced by the K.P Oli led new government. Dr. Yubaraj Khatiwada, the newly appointed finance minister presented the budget of Rs. 1.315 trilllion for the fiscal year 2108/2019. The budget has garnered mixed reviews from the people. While some appreciate it others think it is similar to the previous years budget and hasn’t added any new substantial programme.
The budget has mainly focused on
- Health- Rs 56.4 billion
- Education,Science and technolog- Rs 134.5 billion
- Energy – Rs 83.8 billion
- Urban Development – Rs 33.3 billion
- Transport Infrastructure – Rs 109.3 billiomn
- Post-Quake reconstruction – Rs 151 billion
Furthermore, the new budget also emphasis on energy, infrastructure and budgetary reforms.
- End the extreme poverty, poverty and backwardness
through fast supply of minimum basic needs
- Economic and Human Development through
mobilization of resources
- Development of Prosperous, strong, sovereign and
socialist economy after developing economic,
physical and social infrastructure
New Tax Slab :
The government has also introduced a new tax slab through the budget and some major changes has been made on taxation. Tax rates has been increased in some of the areas like
- Education Service Tax increase to 2% from 1% effective from May 28
- Telecommunication Service Tax increased to 13% from 11% effective from July 17
- Casino Royality increased to Rs 40 Million from Rs 30 Million
New Tax Introduced:
- Health Risk Tax on tobacco products like cigratte, bidi,khaini, etc applicable on import and production
- Applicable on import and export
- Collection at the custom points in case of import
Government has leviated 25 paisa health hazard tax on every unit of tobacco products. Government has also performed VAT refund facility on the import of products like mobiles, ghee and oil.
These are the categories where the tax is imposed by the federal government. But, what people fear the most is about the several tax imposed by three-tier government. After some months of the new system the fear of the people have become a reality due to the additional tax imposed by the provincial and local government. In the way doubling the taxation amount to be paid by the people.
Also, the new income tax has not been drastically change as we can only see some minor changes. However the cess has been increased to 4 per cent from 3 per cent across tax payers. You can view the table below for basic income taxation.
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