Nepal budget exempts income up to Rs1 million from tax, minister cites end to instability

Finance Minister Swarnim Wagle presented Nepal's budget for fiscal year 2026-27, announcing significant personal income tax relief and administrative reforms. Individuals earning up to Rs1 million annually will now be exempt from personal income tax, a move stemming from a broad review of tax rates conducted by the government.

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individuals with an annual income of up to Rs1 million would be exempt from personal income tax.

During the budget speech in the federal parliament, Wagle expressed optimism about the nation's political future. He stated that the "vicious cycle of political instability" in Nepal had come to an end, signaling a new era for the country's governance and development.

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the government had carried out a “broad review” of tax rates while preparing the new fiscal plan.

The budget also includes a series of administrative reforms aimed at improving efficiency and governance within the government. While specific details of these reforms were not elaborated upon in the provided text, their inclusion alongside tax measures suggests a comprehensive approach to fiscal and administrative management for the upcoming fiscal year.

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the “vicious cycle of political instability” in Nepal had come to an end.