Kathmandu: The Government of Nepal has introduced a sweeping package of tax incentives aimed at boosting the agricultural sector and promoting industrialization in the newly announced budget for the fiscal year 2083/84.
Finance Minister Dr. Swarnim Waglé, while addressing a joint session of the Federal Parliament, announced that agro-processing industries will be granted a full income tax exemption for their first ten years of operation. This strategic move is intended to attract significant investment into the sector, encouraging entrepreneurs to transition from traditional farming to high-value processed goods.
In a further effort to reduce the cost of doing business for agricultural firms, the government has also moved to eliminate the tax burden on essential infrastructure. The new budget provides for a full exemption of Value Added Tax (VAT) on machinery and equipment required for cold storage, packaging units, and quality testing laboratories. By lowering these capital costs, the administration aims to modernize the agricultural supply chain, minimize post-harvest losses, and ensure that domestic products meet the rigorous standards necessary for both local consumption and international export.
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