Nepal Budget 2083/84: Income Tax Relief Limit Raised From Rs 5 Lakh To Rs 10 Lakh

The Government of Nepal has increased the income tax relief limit through the budget for the fiscal year 2083/84. Finance Minister Dr. Swarnim Wagle announced the new provision on Friday while presenting the annual budget statement at the joint meeting of the Federal Parliament.

According to the new budget announcement, the income limit where the minimum one percent tax is applied has been raised from Rs 5 lakh to Rs 10 lakh. This means the low-tax income slab has now been doubled, giving possible relief to many taxpayers across the country.

The decision is expected to benefit people with lower and middle-level income, especially salary earners, small business owners, and self-employed individuals. With the previous limit fixed at Rs 5 lakh, many citizens earning modest annual income were already included in the tax system. The new Rs 10 lakh limit may help reduce the tax burden on such income groups.

The increase in the income tax threshold comes at a time when many Nepali families are facing rising living costs. Expenses related to food, rent, education, health care, transport, and daily household needs have increased in recent years. In this situation, the tax relief measure may help citizens keep a larger share of their income.

Finance Minister Wagle made the announcement as part of the government’s wider budget plan for the upcoming fiscal year. The budget for 2083/84 includes policies related to revenue collection, government spending, economic reform, public service delivery, and development priorities.

Among different budget announcements, the increase in the one percent income tax limit is likely to attract strong public interest because it directly affects working individuals and households. Tax policies have a direct impact on people’s personal income, savings, and spending capacity.

However, the full impact of the new tax provision will depend on the detailed tax structure and implementation rules. The government is expected to publish further details through official budget documents and related tax guidelines. Taxpayers will need to review the final rules to understand how the new limit applies to their specific income category.

The budget was presented on Jestha 15, as required by Nepal’s constitutional provision. Every year, the federal government presents the annual budget on this date to outline the country’s income, expenditure, development plans, and economic policies for the upcoming fiscal year.

Overall, the decision to raise the minimum one percent income tax limit from Rs 5 lakh to Rs 10 lakh is one of the major public-focused announcements in Nepal Budget 2083/84. The move is expected to provide some financial breathing space to taxpayers and reduce pressure on annual income.