May 29 : The government is to provide significant exemptions in the income tax for the micro, small and medium enterprises (MSMEs) hard hit by the COVID-19 pandemic and the subsequent lockdown.
Unveiling the budget for the fiscal year 2020/21 in the parliament yesterday, Finance Minister Yubaraj Khatiwada said that 75 per cent exemption has been made in the income tax for the micro enterprises which record annual turnover up to Rs 1 million annually. “Similarly, the income tax exemption rates of the small enterprises having yearly transactions up to Rs 5 million and medium enterprises with such turnover up to Rs 10 million stand at 50 and 25 percent respectively.
Moreover, according to the minister, the affected enterprises can also avail the loans at the subsidized interest rate of 5 percent. For this, a separate fund worth Rs 50 billion will be set up and the Nepal Rastra Bank shall come up with the refinancing facility worth Rs 100 billion.
