Kathmandu, Nepal — Nepali Congress President Gagan Thapa has announced plans for sweeping reforms to Nepal’s personal income tax system if a government is formed under his party’s leadership following the upcoming Falgun 21 election.
Speaking at an election campaign event in Kathmandu, Thapa said the party would exempt individuals earning up to Rs 1 million annually from income tax. He stated that the existing tax thresholds and structure would be reviewed to increase citizens’ purchasing power and provide relief to the middle class.
Thapa also proposed reducing the current maximum income tax rate from 30 percent to 25 percent. He said higher tax rates have negatively affected investment and consumption and emphasized the need to simplify and modernize the tax system to strengthen economic competitiveness.
According to Thapa, attracting foreign investment requires more than political rhetoric and depends on stable and business-friendly policy reforms. He added that the Nepali Congress would pursue a principle of broadening the tax base while lowering tax rates to maintain balanced revenue collection and stimulate economic activity.
Reaffirming the party’s commitment to constitutional implementation and economic stability, Thapa said the next government would introduce practical reforms aimed at encouraging youth entrepreneurship, job creation, and greater private sector participation.
