SC overturns Ex-FM Khatiwada’s decision to impose 15 percent tax on retirement facility of govt employees

KATHMANDU, Jan 26: The Supreme Court has reversed the decision made by former Finance Minister Dr. Yubaraj Khatiwada to impose a 15 percent tax on the retirement facility.

A joint bench of Justice Ishwar Khatiwada and Nahakul Subedi took the decision in this regard. 

With this decision in force, the government employees will now be obliged to pay only five percent tax from the amount they receive as their retirement facility. 

The former Finmin Khatiwada had earlier taken a decision to impose a 15 percent tax on retirement facilities of government employees as per Income Tax Act, 2058.

Government officials at Rastriya Banijya Bank had then filed a writ petition at the apex court.