Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a move to promote a cashless economy, the government of Nepal has abolished the Value Added Tax (VAT) previously imposed on digital transactions, including inter-bank fund transfers. Finance Minister Bishnu Prasad Paudel announced this decision while presenting the budget for the fiscal year 2082/83 (2025/26) during a joint session of the Federal Parliament on Thursday at 3 PM.
“To encourage digital payments, I have abolished the Value Added Tax levied on clearing house services,” Minister Paudel stated. This policy shift is expected to reduce transaction costs for digital banking and promote the adoption of digital payment systems across the country.
The removal of VAT on digital transactions aligns with the government’s broader vision to modernize Nepal’s financial ecosystem and foster economic growth, as outlined in the ambitious NPR 19.64 trillion budget for 2025/26. This initiative is set to enhance financial inclusion and streamline digital banking services for individuals and businesses alike.
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