17. Facilities and Concessions The following facilities and concessions will be provided for the development and promotion of the industry: (A) Income Tax Exemptions and Concessions: 17.1 The corporate rate of tax on income earned from all types of tobacco and alcohol producing industries and special industries other than katha industry will be reduced by 5 percentage points. 17.2 All types of tobacco and alcoholic products manufacturing industries and katha industries, established in highly underdeveloped areas mentioned in Schedule 9, will get ninety percent income tax exemption for ten years from the date of commencement of business. 17.3 Industries established in undeveloped areas mentioned in Schedule 10 other than all types of tobacco and alcohol products manufacturing industries and katha industries will be exempted from income tax for a period of ten years from the date of commencement of business. 17.4 Industries established in less developed areas mentioned in Schedule 11 other than industries producing all types of tobacco and alcoholic products and katha industries will be exempted from income tax for ten years from the date of commencement of business. 17.5 Cider and wine production industries with alcohol content up to 12 percent based on fruit pools established in the districts mentioned in schedule 9 will also get forty percent income tax exemption for ten years from the date of commencement of business. 17.6 Among the priority industries mentioned in Schedule 7, apart from all types of tobacco and alcoholic products manufacturing industries and katha industries, hydropower generation and distribution, mineral mining, production of clinker or clinker-based cement using local raw materials (cement industry), Petroleum and natural gas exploration and extraction industries will be given a ninety percent discount on income tax for seven years from the date of commencement of business. 17.8 The information and communication technology industries mentioned in Schedule 4 will be exempted from fifty percent of the income tax if they are established within the information technology park. 17.9 Any small scale industry employing more than 100 regular native workers for a minimum period of 6 months,If a medium-sized industry employs more than 200 people and a large-scale industry directly employs more than 500 people, such industries will get an additional 25 percent discount on income tax due that year. Also, if such industries directly employ 50 percent of the number of indigenous women or Dalit or disabled workers, such industries will get a 40 percent discount on income tax for that year.

17.10. Expenditures for well-being such as accommodation, life insurance, health facilities, education and training, child care centers and sports/exercise for physical fitness can be deducted for income tax purposes. Also, if the industry provides employment to persons with disabilities including Hochapudka, the wages etc. paid to such workers can be deducted for income tax purposes. 17.11 The expenses invested by an industry in devices and equipment to help reduce energy consumption, capital expenses incurred in connection with pollution control and methods that have less impact on the environment, expenses incurred in technology and processes can be deducted for income tax purposes. Such facility should be used once or within 5 (five) years. 17.12 For income tax purposes, up to five percent of the gross sales income of the industry can be spent on entrepreneurship enhancement and skill development training, research and development and acquiring new technology for productivity enhancement. 17.13 Up to ten percent of the total sales income can be spent for market promotion, survey and advertisement etc. for income tax purposes. 17.14 The amount of expenses incurred for the protection of the physical property of the industry and the premium paid for its insurance shall be deductible from the taxable income. 17.15 The National Priority Industries will be allowed to deduct one third of the same rate at the rate mentioned in the current Income Tax Act while deducting the depreciation of fixed assets. 17.16 Diversification of the industry by reinvestment in the same industry or any other industry or expansion of connected capacity by twenty-five percent or moreIf done, if technology is modernized or ancillary industries are developed, 40 percent of the additional fixed income generated from such reinvestment will be deducted for tax purposes. Such discount amount can be deducted in lump sum in one year or within five years. 17.17 The industry will be allowed to write off the expenses incurred in protecting the industrial property under the registered intellectual property in Nepal for income tax purposes. Income derived from the export of intellectual property will be exempted from export. The government will bear 50 percent of the fee incurred for registering intellectual property abroad. Similarly, the income received from the sale of intellectual property will only be subject to income tax at the rate applicable to dividends. 17.18 Donations and support of the prescribed amounts given in the natural disaster relief, social sector will be exempt for income tax purposes. 17.19 The rate of income tax levied on the income of specified industries to be established as a cooperative will be arranged to be 50 percent lower than the rate of general income tax. 17.20 Domestic and small scale industries can produce auxiliary goods required by such industries by entering into a written agreement with large and medium scale industries. In this way, the industries that produce ancillary goods can also supply goods to other industries by making sub-agreements for co-production. In this way, if auxiliary goods are produced, 50 percent of the net income from the sale of goods prepared by using such auxiliary goods will be exempted from income tax.
(b) Facilities and concessions in customs duty, excise duty and value added tax:

17.21 Excise duty and value added tax will not be charged if goods produced within the country are exported abroad.

17.22 Exporting Industries, export promotion houses and special economic zone industries will be able to produce goods for export by subcontracting with any other industry. The customs duty, excise duty and value added tax on the raw materials, auxiliary raw materials and packaging materials used in the products manufactured in this way are as specified by the exporter based on the quantity exported.Will get it back. 17.23 In order to simplify the duty draw back facility for exports, the same rate will be determined on the basis of consumption of raw materials in case of industries of similar nature. Arrangements will be made to get such money back from the bank where the transaction was made. In the case of industries where the price cannot be determined, the current regular process will also be continued.

17.24 The facility of duty draw back that the industry will get will be compulsorily provided to the exporter within 45 days from the date of submission of the application based on the export quantity. 17.25 The industry will be provided the facility of duty draw waiver to get export as Deemed Export for its products or services sold in the country to earn foreign currency by participating in international trade. Such facility will be provided within 45 days from the date of application. 17.26 If you sell your products within the country to earn foreign exchange, the duties, taxes and customs duties on the raw materials used, auxiliary raw materials and packaging materials, excise duties, value added tax on such products will be considered export as deemed export based on the quantity of the product. will be returned. Such facility will be provided within 45 days from the date of application. 17.27 If an industry producing semi-processed or semi-finished secondary goods sells its products to another primary goods manufacturing industry, the excise duty and value added tax on such goods may be adjusted based on the amount used by the primary goods producing industry. But to enjoy this facility, the industry should be registered for value added tax or excise duty purposes. 17.28 Customs duties on raw materials, auxiliary raw materials, packaging materials required for the industry's production can be reduced by one level 9kbid. In case of import of goods with a minimum duty rate of less than 1 percent, the duty rate shall be reduced to a minimum of 25 percentTo be done

17.29 Only one percent customs duty will be levied on machinery, transformers, generators, industrial equipment and tools imported by the industry for its purpose. Also, 1 percent customs duty will be levied on machinery and equipment imported by quality measurement laboratories, scientific equipment and additional machinery and equipment for industrial expansion, including machinery and equipment for research and development slab and no value added tax and excise duty will be charged. (c) Additional facilities, concessions and assurances:

17.30 The facilities and concessions to be enjoyed by the industries mentioned in this policy shall be ensured by law. In case of changes or additions to the list and arrangement of the classification, underdeveloped, underdeveloped and underdeveloped areas mentioned in the policy, it will be ensured that they will be able to enjoy such facilities without hindrance for the period specified by the law made for the implementation of this policy. If an industry can get more than one type of discount at the same time, the industry will get the higher discount chosen.

17.31 The facilities and concessions received under this policy will not be changed for the specified period.

17.32 Royalty will not be levied on electricity produced by industries for their own purposes. Also, if the industry wants to sell electric power, arrangements will be made to connect it to the national grid at the prevailing rate in the market. The decision will be published in the Nepal Gazette and more facilities will be provided.

17.34 The facility of Wounded Warehouse will be provided to the export promotion industry in a simpler manner. Such facility will be provided within 45 days from the date of application. 17.35 In the case of industries, the demand charge incurred in the electricity tariff will be exempted based on the proportion of the time that there is no electricity supply. 17.36 According to the nature and capacity of the industry, the government will assist in providing the land required for the operation of the industry. Industry QIf it is necessary to release the demarcation of the land after looking at the work, then the demarcation limit of the land can be exempted. 17.37 Arrangements will be made to provide subsidies in the form of seed capital to cooperatives and small enterprises and domestic and small industries to establish industries in highly underdeveloped areas. 17.38 Professional entry permit issued to non-resident Nepalis will be provided free of charge. 17.39 In order to develop and promote the production and market of new products for the industries operated by foreign investment, the branch industries of the parent company in the country will be allowed to import the goods produced by the parent company abroad for a certain period of time within the prescribed conditions and limits. 17.40 Forest production can be made available to industry based on concession or lease. 17.41 The Government of Nepal may publish a notice in the Nepal Gazette and give additional facilities to the industries established in export industries, export promotion zones, government or non-government industrial zones and industrial villages. 17.42 For any national priority industries or industries invented and established within Nepal, on the recommendation of the Small Enterprise, Domestic and Small Industrial Promotion Ward, through the Ministry of Industry, the Council of Ministers can provide additional facilities by publishing a notice in the Nepal Gazette. 17.43 No tax shall be levied on industries established in business development centers (incubation centers) and business development services (incubation services). 17.44 The industries making auxiliary raw materials or packing materials of the exporting industries will also be given facilities on the basis of the quantity used by the exporting industries for export. 17.45 For the development and promotion of the mineral industry, the government will arrange a special program and budget for the construction of access roads to the industry and mining areas, the expansion of electricity transmission lines and the construction of physical infrastructure for electricity services.