15% Income Tax Concession for Public Limited Companies

May 29: The government, in the budget, has announced of giving 15 percent income tax concession for industries established as public limited company. Even though it was not announced in the budget speech, the economical bill publicised on Saturday has clearly stated that manufacturing, tourism services, hydropower production, distribution and transmission bodies listed in securities market will be given 15 percent income tax concession.

Earlier, these organisations were given 10 percent income tax concession. The percentage of income tax concession has been increased as the concession provided before could not attract the real sector into the share market. Few weeks ago, in a program, Rajan Khanal, Revenue Secretary of Finance Ministry had pointed out on possibility of increase in tax concession in the first phase to attract the companies in the share market. Khanal informed that even if the target is not achieved then in the second phase, it will be made mandatory for some sectors. He had also informed that additionally, Finance Ministry has thought of giving tax subsidy for two years.

Khanal had publicised that if companies do not enter share market after receiving tax concession or subsidy, then mandatory provision of issuing shares will be made for companies established under public/private agreement (PPA) model. Meanwhile, the budget has mentioned of presenting commodity market bill in Legislature-Parliament in coming FY.