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Kathmandu, Feb 16: The government has provided tax exemptions worth Rs 53.40 billion in the first six months of the current fiscal year 2025 to 2026.

According to the Ministry of Finance, tax relief amounting to Rs 555.7 million was extended during this period under provisions of the Financial Act. Most of the revenue waiver came from import-related facilities, which totaled Rs 52.54 billion.

The ministry said imports eligible for value-added tax (VAT)exemption under Section 5(3) and Schedule 1 of the VAT Act 1996 received relief worth Rs 29.70 billion.

Under Section 9 of the Customs Act 2007, goods imported with diplomatic privileges were granted revenue exemptions worth Rs 482.9 million. Imports receiving duty facilities under the same section were given relief worth Rs 42.1 million.

As per Section 18(2) of the Financial Act 2025, goods imported by nonprofit public and community institutions, the federal government, provincial governments, local levels, and state-owned entities received exemptions totaling Rs 950.5 million.

Similarly, under Section 18(3) of the same act, goods imported for project development under agreements with the Government of Nepal or the Investment Board were granted waivers worth Rs 1.49 billion.

Under Section 11 of the Customs Tariff Act 2025, imports under the SAFTA facility received exemptions amounting to Rs 2.76 billion. Various provisions of the Customs Tariff Act accounted for another Rs 17.40 billion in waivers.

The finance ministry also reported that 3,477 taxpayers received tax relief totaling Rs 555.7 million under different provisions of the Financial Act 2025.

People’s News Monitoring Service