🇳🇵 Nepal FY 2083/84 Budget – New Personal Income Tax Slabs
Key Changes
✅ Tax-free/lowest tax threshold increased from NPR 500,000 to NPR 1,000,000 annual income.
✅ Maximum personal income tax rate reduced from 39% to 29%.
Individual Income Tax
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to NPR 1,000,000 | 1% |
| Above NPR 1,000,000 | Progressive tax rates apply (full detailed slabs to be finalized in the Finance Bill) |
Estimated Tax Savings
| Annual Income | Old Tax | New Tax | Estimated Savings |
|---|---|---|---|
| NPR 600,000 | ~NPR 15,000 | ~NPR 6,000 | ~NPR 9,000 |
| NPR 800,000 | ~NPR 45,000 | ~NPR 8,000 | ~NPR 37,000 |
| NPR 1,000,000 | ~NPR 85,000 | ~NPR 10,000 | ~NPR 75,000 |
Other Important Tax Announcements
- Customs duties reduced on 273 industrial raw materials.
- Excise duty removed on 360 items.
- Incentives for digital payments and digital economy growth.
- Capital gains tax on shares to continue as a final tax mechanism.
Biggest Winners
- Salaried employees earning approximately NPR 70,000–150,000 per month.
- Professionals in IT, banking, finance, and the corporate sector.
- Middle-class taxpayers who will see significantly lower tax liabilities.
One-Line Summary
The biggest tax reform in the FY 2083/84 budget is the increase of the 1% tax slab from NPR 500,000 to NPR 1,000,000 and the reduction of the top tax rate to 29%, providing substantial relief to Nepal’s middle-income earners.