Kathmandu: The government has introduced a relief package targeting the private sector affected by the recent Gen Z protests.
The Ministry of Finance has announced special tax concessions, primarily customs duty waivers, for damaged businesses.
According to the ministry, businesses whose buildings, furniture, machinery, and equipment were destroyed will receive a 50 percent exemption on customs duties when importing replacements.
However, the specific list of items eligible for the 50 percent duty waiver has not yet been finalized. As a result, private-sector entrepreneurs believe that even imports of goods already produced in Nepal might qualify for exemptions.
Ministry spokesperson Tanka Prasad Pandey explained that details of damaged structures will be verified based on insurance surveyors’ reports. Only after this assessment will the government publish the official list of items eligible for customs and excise duty exemptions.
“Once the insurance surveyors confirm the extent of damage, we will publish the list of goods exempted from customs and excise duties in the Nepal Gazette,” Pandey said.
Still, authorities have indicated that construction materials like cement and iron rods — which are produced domestically — will not be granted such exemptions.
One industrialist told Clickmandu, “From the government’s relief list, it looks like imported goods might get tax waivers even when locally produced alternatives exist. If that happens, those of us who have invested in domestic industries will be at a disadvantage. We hope the finance minister will be mindful of this.”
As per the ministry, under the provisions of the Economic Act 2025, 50 percent exemptions on customs and excise duties will be provided for importing goods to replace buildings, furniture, machinery, and equipment damaged due to arson or vandalism during the protests — provided such damage is verified by an insurance surveyor’s report.
For hotels that had already received customs duty exemptions under the Customs Act 2024, any damages caused by the protests will also be considered for relief. However, they will not be entitled to a double benefit. Instead, such hotels will be allowed a one-time exemption on customs duties for imports necessary for restoration and resumption of operations.
The government will publish an official notice in the Nepal Gazette regarding the exemptions.
Meanwhile, under the Provisional Collection of Taxes Act, the government has the authority to adjust tax rates. Any decision by the Council of Ministers to increase or impose taxes is issued as a “notified order.” Such orders remain valid for six months. The cabinet can also specify the date on which the revised tax rates will take effect.
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