Tax on Bank Interests Increased by One Percent

Finance Minister Dr Prakash Sharan Mahat on Monday evening presented the fiscal budget for the upcoming FY 2080/81.

Addressing a joint session of both the houses in the federal parliament (NA and HOR), Minister Mahat stated that the tax on Bank interests have been revised for the forthcoming financial year.

In line with the new legal arrangements, the tax rate on interest on deposits in banks, financial institutions and microfinances (Sahakari) has been increased to six percent.

Earlier, there was a liability of 5 percent tax on interests from deposits in BFIs and microfinances, which has now been increased by one percent.

Previously, while presenting the Programmes and Polices of the government on Jestha 05, incumbent President Ram Chandra Paudel had stated that the government will increase the scope of revenue collection and revise the existing tax laws. 

There is a binding constitutional provision for the government to present the fiscal budget of the upcoming financial year on Jestha 05, each year.  

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