Kathmandu [Nepal], July 17 – Nepal has introduced new taxes and higher levies across seven sectors from Friday as the new fiscal year begins expanding its tax base in a move aimed at increasing government revenue while raising the cost of several goods and services.
The measures affect private education, private healthcare, electricity consumption, gold and silver purchases, ride-sharing services, casinos, and luxury hotels and resorts.
Under the new policy private schools will add a 3 percent tax to tuition fees increasing education costs for households. Patients seeking treatment at private hospitals will also pay a 3 percent tax on medical services.
The government has also raised the tax on purchases of gold, silver and related jewellery by 0.5 percentage points.
Consumers using more than 50 units of electricity will now be subject to a 5 percent tax a measure expected to affect many urban households, businesses and industries while lower usage consumers will remain exempt.
Ride sharing services will also face a 5 percent service tax which could result in higher fares for passengers or changes to driver earnings depending on how companies adjust pricing.
The annual royalty paid by casinos has doubled from Rs 15 million to Rs 30 million increasing operating costs for casino operators.
In addition, a 2 percent levy has been imposed on five-star hotels, luxury resorts and imported alcoholic beverages a move likely to increase costs for high-end consumers, tourists and the hospitality industry.
The government said the measures are intended to strengthen public finances by broadening the revenue base though analysts say the higher taxes on essential services such as education, healthcare and electricity will increase the financial burden on many households.
