New Tax Slab: Individuals and Proprietorship Firms with Income Above Rs 50 Lakh to Face 39% Tax Rate

In a parliamentary session on Monday, Finance Minister Dr. Prakash Sharan Mahat unveiled the budget for the forthcoming fiscal year 2080/81.

The announcement took place during a joint session of the National Assembly and House of Representatives in the federal parliament.

Addressing the joint session of the federal parliament this evening, Finance Minister Mahat stated the tax slab for persons and propreitorship firms making an income in excess of Rs. 50 lakhs annually have to pay 39 per cent income tax.

Earlier, the tax rate for income of more than Rs. 20 lakhs was set at 36 % while a limit below 20 lakhs was not used.

The government had previously mentioned that it will increase the scope of revenue collection as well as review the existing tax laws. 

The constitutional requirement obliges the government to reveal the budget on Jestha 15 each year.

Earlier, on Jestha 05, President Ram Chandra Paudel, the incumbent at the time, had presented the ruling coalition government's policies and programs for the upcoming fiscal year. Typically, the government formulates the budget based on its outlined policies and programs, serving as a blueprint for its planned course of action.