Nepali Congress President Thapa Pledges Major Income Tax Overhaul If Elected

Kathmandu. Nepali Congress President Gagan Kumar Thapa has announced a sweeping overhaul of the personal income tax system following the elections scheduled for Falgun 21, should the Congress lead the government.

Addressing the party's 'Pledge Assembly' in Kathmandu on Thursday, he promised that no tax would be levied on incomes up to NPR 1 million annually to provide relief to the middle-class citizens. He clarified that this policy is being introduced to review the current tax ceiling and increase the disposable income in the hands of the general public.

President Thapa outlined a plan to reduce the maximum existing income tax rate from 30 percent to 25 percent to mitigate the impact of high tax rates on investment and consumption. Arguing that merely giving speeches is insufficient to make Nepal an attractive center for foreign investment, he stated that policy reform and simplification of the tax system are mandatory. He claimed that making all types of tax rates hassle-free and investment-friendly is the Congress's main economic agenda.

Stating that the party is fully committed to implementing the constitution alongside economic reforms, Thapa signaled that Congress would adopt a new economic model in governing the next administration. He stated that the economy would be energized based on the principle of broadening the tax base while lowering the rates. He expressed confidence that such concrete tax reform programs would play a significant role in creating an environment for youth and entrepreneurs to work domestically and in attracting foreign investors.