Thursday Jun 20, 2024
Thursday Jun 20, 2024

FY 2024/25 Budget: Changes made in tax rates of different goods, commodities

2024 May 28, 19:18,

The government has made changes in the tax rates of different goods and commodities through the upcoming fiscal year's budget announced today.

Unveiling the budget, Minister for Finance Barshaman Pun announced the reduction of the import fees and excise duty on the raw materials of drugs, induction stoves, yarn, helmets, incense sticks, sanitary pads and some of the raw materials of other goods to prioritize the domestic industries.

Likewise, Finance Minister Pun has scrapped the provision of VAT exemption being given in some goods, which, he said is aimed at expanding the base of tax and developing a clean tax system.

"I have annulled the VAT imposed on potato, onion, apple and other vegetables and fruits. This shall help promote domestic production," Finance Minister Pun hoped.

Similarly, the excise duty rate imposed on liquor, beer, tobacco and cigarettes has been increased.

Furthermore, the existing threshold on mixed transactions of goods and services for registration in VAT has been increased to Rs 3 million.

The green tax has been imposed on the import of petroleum products and coal.

Likewise, the government has taken the policy to increase import tax and excise duty on some readymade goods for the protection of domestic industries.

The income tax imposed on the payment of the interest rate of the banks and financial institutions has been decreased to lure foreign capital.

Minister Pun has also announced to develop a model of agreement to end the dual tax system to promote foreign investment from different source countries.

The information technology-based industries would be given an exemption on the dividend tax if their profits were capitalized.

The customs duty of 15 percent being charged for the import of steel milk can for the animal keeping farms and industries producing more than 1,000 litres of milk daily is reduced to just one percent.

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