Kathmandu: In a major move to provide financial relief to the public, the government has significantly increased the individual income tax exemption limit to 10 lakh rupees. This adjustment is aimed at easing the tax burden on low- and middle-income earners, allowing a larger portion of the population to retain more of their earnings.
While presenting the federal budget for the fiscal year 2083/84 at a joint session of the Federal Parliament, Finance Minister Dr Swarnim Wagle announced that the government has opted to raise the minimum tax-free ceiling while simultaneously lowering the highest tax brackets.
Specifically, the maximum income tax rate, which currently stands at 39 percent, is being reduced by 10 percentage points to 29 percent. This strategic reduction in the upper tax limit is intended to make the tax system more competitive and provide significant relief to high-income professionals and entrepreneurs.
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