Management Notes

Reference Notes for Management

Revenue Structure in Nepal – Taxes, Grants, Non Tax Revenue, Miscellaneous Revenue & Cash Balance | Public Economics

Revenue Structure in Nepal

  A. Taxes      

1) Taxes on Income , Profits, and Capital Gains

a) Payable by Individuals and Sole Traders

  • Individual or Sole Traders
  • Remuneration Tax
  • Capital Gain- Individuals

b) Payable by Enterprises and Corporations

  • Company profit Tax paid by Government Corporation Companies, Public Limited Companies, Private Limited Companies and Other Institutions.
  • Capital Gain Entity

c) Taxes on Investment and Other Income

  • Taxes on Rent and Lease Income
  • Interest
  • Dividend
  • Other Investment Income
  • Taxes on gambling, lottery, souvenir and grants
  • Taxes on Other Income
2) Taxes on Payroll and Workforce

  • Social Security Taxes on Payroll
3) Taxes on Property

  1.  Recurrent taxes on Immovable Property
  2. Taxes on Financial and capital Transactions
  3. Taxes on Goods and Services
4) Value Added Tax (VAT)
5) Excise

  1. Tobacco
  2. Alcohol
  3. Beer
  4. Excise on other product Items
  5. Import Duties
6) Taxes on Specific Services

  1. Foreign Employment Services
  2. Health Services
  3. Education Services(Institutes)
  4. Education Services (Abroad Study)
7) Taxes on Use of Goods and on Permission to Use Goods

  1. Vehicle Tax
  2. Taxes on the use of infrastructure
  3. Road Maintenance and Improvement Duty
  4. Road Construction and Maintenance Duty
8) Customs and Other Import Duties

  1. Import Duties
  2. Indian Excise Refund Fees
  3. Local Development Fees
9) Taxes on Exports

  1. Export Duty
  2. Export Service Charge
10) Other Taxes on International Trade and Transactions

  1. Agriculture Service Charge on Imports
  2. Other Income related to Customs
11) Registration Fee

  1. Firm Registration Fee
  2. Agency Registration Fee
12) Ownership Certificate Charge

  1.  Driving License and Vehicle Ownership Certificate Charge
  2.  Fire Arms Registration


    B. Grants     

1) Recurrent Grant

2) Capital Grant

3) Grants From International Organizations

  C.   Non Tax Revenue   

1) Property Income

a) Interest

  • Interest from Financial Institutions, Commercial Institutions, Industrial Institutions, Service Oriented Institutions and other Institutions.

b) Dividends

  • Dividend from Financial Institutions, Commercial Institutions, Industrial Institutions, Service Oriented Institutions and other Institutions.

c) Rent and Royalty

  • Rent on lease of Government Policy
  • Royalty on Casino Operations
  • Royalty from Mine Extraction
  • Income and Royalty from Water Resources Sector Hydro Power Projects
  • Royalty and Other Income from the Sales of Forest
  • Products
  • Other Royalty

2) Sales of Goods and Services

a) Sales of Goods

  • Sales of Agricultural Products, Government Property and other items.
  • Telephone service fees
  • Charge for the issue of Telephone services
  • Water connection and supply
  • Fee for use of Water for Irrigation
  • Charges for Consumption of Electricity

b) Administrative Fees

  • Judicial Fee Duty
  • Charges for use of Postal Services
  • Income from Education sector
  •  Exam Fee
  • Transport Sector
  •  Export Import License Fee
  • Other Administrative Fee
3) Penalties Fines and Forfeiture

  1. Judicial Penalty, Fines and Forfeiture
  2. Administrative Penalty, Fines and Forfeiture
4) Voluntary Transfers other than Grants

  1. Recurrent
  2. Capital





   D.  Miscellaneous Revenue   

1) Administrative Fee

  1. Charges for Issuing Passports
  2. Visa Fees
  3. Permit for Mountaineering and Trekking
  4. Other Fee from Tourists
2) Other Revenue

  1.  Pollution Control Fees
  2.  Other Revenue
  3. Sales of Government Land and Building

   E. Cash Balance of Last Year and Irregularities   

1) Cash Balance of Last Year

2) Irregularities

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