Budget offers tax relief, digital payment incentives and push for AI education

Nepal's government has announced a budget for the fiscal year 2026-27 aimed at stimulating the economy through tax relief and digital incentives. Finance Minister Swarnim Wagle presented the budget, highlighting special concessions for 12 major products that achieve at least 50 percent value addition within the country.

Capital gains tax will now be treated as a final tax, and the government plans to further ease provisions for Nepali citizens investing abroad. A 10 percent VAT discount will be offered for payments made through digital platforms, signaling a push towards digital transactions. Additionally, a high-level committee will be formed to study the feasibility of a multi-rate VAT system.

Recognizing the growing importance of artificial intelligence and information technology, the budget emphasizes mathematics education, particularly in areas related to AI applications. The government also announced plans to increase the capital base of Rastriya Banijya Bank and intends to table a sunset law for development projects in Parliament within the current fiscal year. To mobilize foreign capital, Nepal plans to issue offshore bonds in foreign currencies.