Government to offer immediate 10% VAT rebate for digital payments to promote cashless economy

Kathmandu: In a significant move to accelerate the digitization of the national economy, Finance Minister Dr Swarnim Waglé has announced that consumers will be eligible for an immediate 10 percent rebate on Value Added Tax (VAT) when making purchases through digital payment methods. This announcement was made during the presentation of the federal budget for the upcoming fiscal year 2083/84 before a joint session of the Federal Parliament.

According to the new provision, the government will implement a system that ensures an instant refund of 10 percent of the paid VAT amount for any transaction completed electronically. While the standard VAT rate in Nepal currently stands at 13 percent, this incentive is designed to reduce the effective tax burden for consumers who opt for cashless transactions.

By providing this immediate financial benefit, the government aims to enhance financial transparency, discourage the informal cash economy, and promote the widespread adoption of digital wallets and banking apps across all commercial sectors.