Kathmandu: The government has implemented a major overhaul of the long-standing and “cumbersome” tax structure that has frequently been a source of frustration for both taxpayers and the tax administration. By streamlining these fragmented charges, the administration aims to simplify the fiscal process and improve the ease of doing business within the country.
In a strategic shift towards environmental sustainability and administrative efficiency, the government has abolished four different types of taxes previously levied on fuel and vehicles, merging them into a single, consolidated Green Tax. This move is intended to replace the multiple, overlapping surcharges with a more transparent and manageable taxation framework.
Before this reform, fuel and vehicle imports were subject to an array of individual charges, including the Infrastructure Development Tax, Road Construction Fee, Road Maintenance and Improvement Fee, and the Pollution Control Fee, along with a separate Green Tax. Under the new policy, the first four specific levies have been scrapped entirely, with their functions and revenue goals now integrated into the expanded Green Tax system.
Finance Minister Dr Swarnim Waglé announced these significant changes while presenting the federal budget for the upcoming fiscal year 2083/84 during a joint session of the Federal Parliament. He emphasized that this restructuring is a key step in modernizing the nation’s tax regime and aligning it with international environmental standards while reducing the administrative burden on the public.
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