The House of Representatives on Saturday, June 28, passed the Finance Bill, 2082.

Deputy Prime Minister and Finance Minister Bishnu Paudel had tabled the motion for approval, which was endorsed by a majority in the Lower House.

Earlier, lawmakers had proposed several amendments to the bill. Responding to their concerns, Minister Paudel said the bill had retained most of the existing provisions, with changes made only where essential. “The objective is to ensure policy stability and create a conducive environment for investment,” he added.

Paudel noted that the bill prioritises expanding the tax base, preventing revenue leakage, and incorporating the informal economy into the formal tax system. He emphasised that frequent changes to tax policy had caused uncertainty for investors, affecting business confidence and financial planning.

In Pictures: Jewelry Stores Go Dark in Kathmandu Over Revised Tax Rules

He also highlighted that the bill includes targeted tax exemptions and concessions for sectors that drive investment, boost productivity, and contribute to national economic growth.

Regarding tax hike on alcohol and tobacco products, Minister Paudel explained the adjustment was guided by public health considerations.

The bill also removes the provision for advance tax at customs, which Paudel described as “principally flawed.”

As none of the lawmakers withdrew their proposed amendments, those were ultimately rejected by a majority of the House.

(With inputs from RSS)