5 June 2026 | INSIGHTS
CONTENTS
COMPARATIVE CHART OF TAXES AND FEES CHARGED BY FINANCE BILL, 2083
AMNESTY LIST BY FINANCE BILL, 2083
EXECUTIVE SUMMARY
Following our earlier publication highlighting the Budget Speech 2083/84, this second part focuses on the major tax, fee, penalty and amnesty measures introduced through Finance Bill, 2083.
This publication provides a concise summary of the comparative analysis of the taxes and fees imposed by Finance Bill and the amnesty and waiver provisions announced for taxpayers.
The objective is to assist businesses, investors, professionals, and taxpayers in understanding the practical implications of the proposed changes and preparing for their implementation.
COMPARATIVE CHART OF TAXES AND FEES CHARGED BY FINANCE BILL, 2083
| S.N. | SECTOR | PROVISIONS | FY 26-27 | FY 25-26 |
|---|---|---|---|---|
| 1. | Manpower & Foreign Employment | Foreign employment service fee | No Change | 1% |
| 2. | Various | Pollution Control Fee on Sale of Petrol & Diesel | No Change | NPR 1.5/Ltr |
| 3. | Various | Infrastructure Development Fee on import of petrol & Diesel | – | NPR 10/Ltr |
| 4. | Various | Road maintenance & improvement Fee on import of Petrol & Diesel (Per Ltr.) | – | NPR 4 on petrol & NPR 2 on Diesel |
| 5. | Telecommunications | Telephone Connection Fee | No Change | NPR 500 |
| 6. | Telecommunications | Sim card and Recharge card fee | No Change | 2% |
| 7. | Telecommunications | Telecommunication Service Fee | No Change | 10% |
| 8. | Telecommunications | Tel. Service fee on Inter-connection charges & Fixed Broadband Service | No Change | 50% |
| 9. | All Importers | Green Tax on Import of Goods | Some Changes in Schedule 1 | As per Schedule 1 |
| 10. | All Importers | Domestic Production Preservation and Promotion Fee on import of goods | Rate As per Schedule 2 | – |
| 11. | Automobiles | Clean infrastructure Investment fee on imported or domestically produced electric vehicles and transport means | Rate as per Schedule 3 | – |
| 12. | Automobiles | Road Construction Fee on imported or domestically produced vehicles and transport means | Rate as per Schedule 4 | – |
| 13. | Hospitality/Jewellery | 2% Luxury Tax on goods & Services as per Schedule 5 | Schedule excludes Gold & Jewellery | Schedule Includes Gold & Jewellery |
| 14. | Jewelry / Precious Metals | Skills Promotions Fee on sale of Gold, Silver and their Jewelry | 0.50% | – |
| 15. | Banking | Education Service Fee on Foreign currency exchange facility provided to students going abroad for studies | No Change | 3% |
| 16. | Private Healthcare | Health equity fee to be charged on all service charges collected by private health service providers | 3% | – |
| 17. | Private Education | Education equity fee to be charged on all charges collected by Private educational Institutions from Student | 3% | – |
| 18. | Various | Health Risk Tax to be charged on items under Schedule 10 | Some Changes in Schedule 10 | Schedule 10 |
| 19. | Entertainment | Film Development Fee on entry charges of Foreign Films in Nepal | No Change | Schedule 11 |
| 20. | Hospitality | Annual Royalty Fee for Casino Operations | NPR 5.5 Crore | NPR 5 Crore |
| 2 1. |
Hospitality | Annual Royalty Fee for machine-based Games | NPR 3 Crore | NPR 1.5 Crore |
| 22. | Non-Resident Digital Service Provider | Digital Service Tax to Non-Resident providing Digital Service to Nepalese consumer | No Change | 2% |
| 23. | Ride Sharing Platform | VAT to be charged on ride sharing fee and transport/delivery service fee by ride sharing Operator | 5% | – |
| 24. | Ride Sharing Platform | TDS to be deducted on ride sharing service fee payable to natural person providing service through ride sharing platform | 1% | – |
AMNESTY LIST BY FINANCE BILL, 2083
| S.N. | TOPIC | PROVISION | DEADLINE |
|---|---|---|---|
| 1. | Imports for Hydropower Projects Against Bank Guarantee | Approved hydropower projects may import essential construction equipment, machinery & its components, explosives, penstock pipes, and steel plates under a bank guarantee for customs, excise, and VAT, with a recommendation from the Department of Electricity Development | – |
| 2. | Deduction for Contribution to National Reconstruction Fund | Contributions made to the National Reconstruction Fund during FY 2082/83 are deductible while calculating taxable income | 2082/83 |
| 3. | Relief for Loss of Trading Stock | Businesses affected during the Gen-Z movement may claim income tax deduction and VAT credit on uninsured inventory losses, subject to reporting and verification requirements. | 2082/83 |
| 4. | Relief for Damaged Business Assets | Businesses whose buildings, machinery, furniture, or equipment were damaged during the Gen-Z movement are eligible for a 50% customs and excise duty exemption on replacement imports. Casinos are also entitled to royalty and renewal fee waivers for the period of business interruption. | – |
| 5. | Tax Exemption for Foreign Aid Projects | Income earned by non-resident contractors and service providers engaged in projects funded through foreign aid agreements may qualify for income tax exemption where such exemption is provided under the relevant agreement | – |
| 6. | Customs Duty Relief for NEA Projects | Imports for approved Nepal Electricity Authority projects financed through specified foreign loans shall be subject to only 1% customs duty, with the remaining taxes converted into Government equity investment. | – |
| 7. | Settlement of Old Taxes | Outstanding tax liabilities under repealed acts (hotel, entertainment, contract, sales tax) will be waived. | – |
| 8. | Luxury Tax and VAT Settlement | Uncollected luxury tax on gold/jewelry and VAT on diamonds/gems up to FY 2082/83 will be automatically settled. | – |
| 9. | Destruction of Expired/Unusable Goods | Raw materials, semi-finished goods, and finished goods located in industrial premises that have expired or become unusable may be destroyed under a committee led by the Inland Revenue Office and witnessed by representatives of the District Administration Office, Treasury and Controller Office, and local Chamber of Commerce and Industry. Reusable items may be retained upon inventory recording and approval from the Inland Revenue Office |
Poush 2083 |
| 10. | Disposal of Excise Stamps | Excise stamps partially or fully destroyed during the Gen-Z movement or otherwise rendered unusable may be destroyed and written off following verification and inventory procedures under the supervision of relevant authorities. | – |
| 11. | Waiver of Penalty and Interest on Post-Clearance Audit Assessments | Where customs duty, excise duty, or VAT assessed through post-clearance audits under the Customs Act, 2064 remains unpaid, or is under appeal, the importer may obtain waiver of all penalties and accrued interest by paying the assessed principal amount. | Poush 2083 |
| 12. | Exemption for Shipping Containers Returned by Shipping Companies | Shipping containers owned by domestic or foreign shipping companies and remaining in customs premises for a long period may be returned without any fee or demurrage charge if application is made by the end of Mangsir 2083. | Mangsir 2083 |
| 13. | Income Tax Relief for Entities Entering the Tax Net | Universities, diplomatic missions, development partners, and non-resident investors will not be required to file income tax returns for FY 2082/83 except for withholding tax already deducted. Community schools and health institutions filing returns by Poush 2083 will also be exempt from past liabilities. | Poush 2083 |
| 14. | Tax, Interest and Fee Waiver for Non-Profit Organizations | Non-profit organizations registered under the Association Registration Act, 2034 whose assets devolve to the Government upon dissolution shall receive waiver of tax, interest, and fees on taxable income arising from donations, grants, and gifts if returns for FY 2082/83 are filed by the end of Poush 2083. | Poush 2083 |
| 15. | Waiver for Insurance Agents | Insurance agents who failed to collect VAT in prior years shall receive waiver of VAT, interest, additional fees, and penalties and will not be required to submit tax returns for those periods. | – |
| 16. | Waiver of Income Tax, Interest and Fees | Non-PAN taxpayers: Individuals who earned taxable income in the past without obtaining a PAN or filing returns may regularize by obtaining a PAN and filing returns for FY 2079/80 to 2082/83 by the end of Poush 2083. Taxes must be paid, but all interest and fees will be waived. No filing is required for earlier years. Inactive PAN holders: Taxpayers with PAN but no transactions or returns up to FY 2081/82 may regularize by filing FY 2082/83 returns and paying taxes by Poush 2083, with an application to restart business. Past filings are not required. If no application is submitted, the PAN will be automatically deregistered. Future reactivation will require filing and payment of taxes, interest, and fees for the intervening period. For taxpayers with outstanding liabilities: Taxpayers who earned income under PAN but failed to pay taxes and submit returns may settle by paying the due tax along with 1% of the outstanding amount and filing returns by the end of Poush 2083. In such cases, interest and fees will be waived. |
Poush 2083 |
| 17. | Special Provision on Waiver of VAT Penalties and Interest | VAT-registered persons who failed to file returns or deposit VAT may regularize their compliance by filing outstanding returns and paying the principal VAT along with an additional 1% amount. Interest, penalties, and additional fees will be waived. | Poush 2083 |
| 18. | VAT Settlement on Cheese | Outstanding VAT on past sales of cheese produced from milk, which was not collected, has been waived. | Poush 2083 |
| 19. | Waiver of Excise Penalties and Late Fees | Excise taxpayers who failed to collect or pay duties can settle by filing returns and paying the due excise plus 1% by Poush 2083, with penalties and late fees waived, while license holders who renew by Ashoj 2083 will have past renewal fees and penalties waived, and unrenewed licenses will be automatically cancelled. | Poush 2083/Ashoj 2083 |
| 20. | Waiver for Filed but Unpaid Taxes | Taxpayers who have filed VAT, income tax, or excise returns but have outstanding tax liabilities may obtain a waiver of interest, penalties, additional charges, and late fees by paying the outstanding tax together with an additional 1% amount. | Poush 2083 |
| 21. | Waiver for Assessed Tax Liabilities | Taxpayers with liabilities arising from tax assessments till Jestha 15 2083 may obtain a waiver of penalties, additional charges, and interest by paying the assessed tax and an additional 1% amount. This facility does not apply to telecommunications service providers. | Poush 2083 |
| 22. | Settlement of Pending Tax Disputes | Taxpayers with pending tax disputes before administrative or judicial authorities may withdraw their cases and settle the disputed tax by paying the principal tax and an additional 1% amount. Interest, penalties, and late fees will be waived. This facility is not available to telecommunications service providers. | Poush 2083 |
| 23. | Relief for Employees of International Organizations | Resident Nepali employees of the United Nations, international organizations, and diplomatic missions may regularize their tax obligations by filing returns and paying the applicable tax plus 1%, with a waiver of interest and fees. | Mangsir 2083 |
| 24. | Waiver of Fees, Interest, and Penalties under the Companies Act, 2063 | A company registered under the Companies Act, 2063 that has failed to file statutory returns, renew its registration, or pay applicable taxes, fees, charges, interest, or penalties may obtain a full waiver of all such outstanding liabilities accrued up to the date of compliance. To avail this facility, the company must submit the required returns and pay the taxes, fees, and charges applicable for FY 2082/83 by the end of Ashwin 2083. This facility is available to companies intending either to continue operations or to deregister the company. | Ashwin 2083 |
| 25. | Settlement of Pending Tax Cases | Income tax and VAT cases filed under the Revenue Leakage (Investigation and Control) Act, 2052 that are still under court proceedings may be settled if the taxpayer pays the assessed amount plus 1% of the outstanding by the end of Poush 2083 and submits an application to the concerned office; in such cases, penalties will be waived and the Government of Nepal may withdraw the case. | Poush 2083 |
| 26. | Bank Guarantee or Cash Deposit Release | Industries licensed under bonded warehouse facilities that imported raw materials under bank guarantee, or those without such license that imported under passbook facilities, may release their bank guarantee or cash deposit if they export the finished goods by the end of Mangsir 2083, receive foreign currency, and submit required documents as proof. | Mangsir 2083 |
| 27. | Transfer of Duty-Free Vehicles | Foreign diplomatic missions or donor agencies may transfer vehicles imported under diplomatic or customs duty concession facilities, provided such vehicles are not more than ten years old from the date of manufacture to any agency of the Government of Nepal by the end of Poush 2083. Vehicles transferred under this provision shall be fully exempt from customs duty, value added tax (VAT), excise duty, and road construction levy. |
Poush 2083 |
KEY CONTACTS
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