Revenue Advisory Committee advises govt to reduce corporate tax rate

KATHMANDU, July 11:

The government should decrease corporate income tax if it wants to have taxation system similar to other countries, Revenue Advisory Committee (RAC) has told the government.

Presenting a study report to Minister of Finance Ram Sharan Mahat on Friday, Laxmal Aryal, coordinator of the committee, said that the government should slash corporate tax in coming three to four years to develop Nepal's taxation system in line with the international taxation structure.

The government currently levies 25 percent corporate income tax. The committee has, however, advised the government to increase income tax of individuals while decreasing corporate income tax. The government levies 15 to 35 percent of income tax on individual depending on their income.