Kathmandu. Finance Minister Swarnim Wagle, responding to the queries raised in the House of Representatives on Friday, clarified about the tax levied on private schools and personal tax exemption facility. According to him, the tax system is not applicable to the community schools while the private schools are currently taxed by three percent. He also said that private schools can deduct up to Rs 25,000 annually from the expenses spent on the education of their children.
“The tax on education is not on community schools. In private schools, the current rate is three percent. However, the tax deduction is allowed for spending up to Rs 25,000 on private school expenses for their children. ’
Finance Minister Wagle said that Nepali citizens earning up to Rs 10 lakh annually have not been brought under the ambit of income tax.
“Nepali citizens earning Rs 10 lakh a year are not taxed. Income tax free is a very revolutionary step. It is saving millions,” he said.
He further clarified that the tax exemption facility has been provided on the money spent in private schools targeting the middle and upper middle class.
According to him, Rs 25,000 of the annual expenditure or 25 percent of the total expenditure, whichever is less, can be withheld from tax.
He said, “Those who spend Rs 5,000 will pay Rs 150 but lakhs of rupees have been discounted.” There is no need to pay tax. Not only in the middle class but also in the upper middle class, those in the upper middle class are exempted from tax deduction of Rs 25,000 or 25 percent of the cost, whichever is less. Therefore, these steps have been taken for the long-term formalization of the economy. ’
Finance Minister Wagle said that these policies have been brought with the objective of formalizing the economy and systematizing the tax system in the long run.
प्रतिक्रिया दिनुहोस्
