Government of Nepal Announces New Tax Relief Provisions for Fiscal Year 2082/83
The Government of Nepal has introduced new tax relief measures through a notice published in the Nepal Gazette on Ashoj 10, 2082 (September 26, 2025). These provisions aim to support businesses, industries, and taxpayers affected by recent national events and to promote responsible financial contributions to national funds.
Key Legal Basis: Finance Act, 2082
The decision has been made under Sub-section (1) of Section 18 of the Finance Act, 2082, granting the government authority to implement special tax-related relief and adjustments. These measures apply for the Fiscal Year 2082/83 and benefit both individuals and organizations.
1. Tax Deduction for Contributions to the Prime Minister’s Relief Fund
Support Through Social Contribution
Taxpayers who have made financial contributions to the Prime Minister’s Relief Fund during the Fiscal Year 2082/83 can now claim these amounts as deductible expenses.
This means the donated amount can be excluded from taxable income, effectively reducing the taxpayer’s overall income tax liability for that year.
Encouraging National Support and Social Responsibility
This initiative encourages individuals and businesses to participate in national relief and recovery programs, ensuring that their social contributions are also recognized in the taxation system.
2. Tax Relief for Businesses Affected by the National Movement
Support for Businesses Facing Losses Due to Unrest
Businesses, industries, and professional institutions that suffered losses or damages during the recent national or political movements are eligible for special tax consideration.
If their business inventory or assets were destroyed or damaged and not covered by insurance, they may still claim deductions.
Procedure for Claiming Tax Adjustments
Affected taxpayers must:
Conduct a self-assessment of the damaged or lost inventory, including the cost and quantity.
Submit this information to the concerned Inland Revenue Office.
Claim deductions under:
Income Tax Act, 2058 – for inventory cost deduction.
Value Added Tax (VAT) Act, 2052 – for related tax adjustments.
This relief allows taxpayers to reduce their taxable income based on verified losses, helping them recover financially.
3. Government’s Appeal to All Taxpayers
The Government of Nepal has officially urged all taxpayers and stakeholders to utilize these relief measures responsibly. These provisions are designed to:
Provide financial relief to affected individuals and businesses.
Promote transparent and lawful tax adjustments.
Encourage participation in national relief programs.
Through these initiatives, the government aims to support economic stability, promote business continuity, and strengthen public trust in Nepal’s taxation system.
Conclusion: A Step Toward Economic Relief and Recovery
The tax relief provisions for FY 2082/83 represent the government’s commitment to helping the business community and individuals recover from recent economic and social challenges.
Taxpayers are encouraged to contact their nearest Inland Revenue Office or authorized tax consultant for detailed guidance on claiming these deductions and adjustments.