Section 15
Facilities And Concessions To Be Accorded To Industries
15. Facilities and Concessions to be Accorded to Industries:
Notwithstanding anything contained in the laws relating to income tax, sales tax, excise duty and customs duties and in any other existing laws, an industry
shall be entitled to receive the following facilities and concessions:-
(a) ……. ◊
@ (b) ————–
(c)……
∝
◊ Deleted by Financial,2065
@ Deleted by the First Amendment
(d)…… ∝
(e)…… ∝
#( f)
Any industry, established in any Remote, Undeveloped, and Underdeveloped Areas as enlisted in Annex-3, other than cigarettes, bidi, cigar, chewing tobacco, khaini industries and industries producing other goods of a similar nature utilizing tobacco as their basic raw material, and industries producing alcohol or beer, shall be granted a rebate of thirty, twenty-five and twenty percent of the income tax respectively and
∝ ……….thirty-five, twenty-five and fifteen percent of
excise duty respectively for a period of ten years from the date of
operation.
(g) Fruit based fruit processing and cider and wine industries with a fixed asset of up to two million five hundred thousand rupees established in
Mugu, Humla, Jamla, Mustang, Manang, Solukhumbhu, Sankhuwasabha and Taplejung districts shall be entitled to an excise duty and sales tax exemption for a period of ten years, and fruit based alcohol industries shall be entitled to excise duty and sales tax exemption for a period of five years. On completion of such exemption period, Government of Nepal may grant excise duty and sales tax exemption to the fruit based alcohol industries for up to an additional
period of three years.
_______________________
∝ Deleted by Income Tax Act,2058
∝ Deleted by Income Tax Act,2058
∝ Deleted by Income Tax Act,2058
# Amended by the First Amendment
∝ Deleted by Income Tax Act,2058
(h) While calculation depreciation on the fixed assets, industries shall be entitled to add on third to the rate or depreciation allowed under the
existing income tax laws.
@ (i)
………….
(j)……… ∝
(k) Permission shall be granted for a reduction of up to 50 percent from the taxable income for the investment of an industry on process or
equipment, which has the objective of controlling pollution or which may have minimum effect on the environment. Such remission may be
deducted on a lumpsum or on an installment basis within a period of three years.
(l) ………. ∝
(m) ……………. @
(n) After an industry comes into operation, 10 percent of the gross profit shall be allowed as a deduction against taxable income on account of
expenses related with technology, product development and efficiency improvement.
(O)………. ×
(p)…..
∝
(q)…… ∝
(r)….. ∝
(s) ….∝
______________________
@ Deleted by the First Amendment
∝ Deleted by Income Tax Act,2058
@ Deleted by the First Amendment
× Deleted by Amending Some Nepal Acts, 2057
∝ Deleted by Income Tax Act,2058
(t)…… ×
(u) the customs duty, sales tax, excise duty and premium levied on ∑ packing materials raw materials and auxiliary raw materials, etc.,
utilized by any industry in connection with its product during its production shall be reimbursed on the basis of the quantity of the export.
Such reimbursement shall be made to the exporter within sixty days after an application to that effect has been duly submitted.
Provided that no reimbursement will be made if an application to that effect is not submitted within one year from the date of export.
# (v) In cases where any industry sells its products in the Export Promotion House, the customs duties and sales tax levied on the raw materials
imported for producing the products so sold as well as the sales tax and excise duty levied on the products so produced shall be reimbursed to
the concerned industry on the basis of the quantity of sale and export.
Explanation: For the purposes of this clause, the words “Export Promotion House” mean a company, firm, or co-operative body established as prescribed with the objective of gathering the products of the industries established in Nepal and exporting them to foreign countries.
(w) If any industry sells its product within Nepal in any foreign currency, the excise duty, sales tax and premium levied on such product and customs duty, excise duty and sales tax levied on ∑ packing materials, the raw materials, auxiliary raw materials, etc. utilized in such product shall be reimbursed. The revenue to be so reimbursed shall be refunded
× Deleted by Amending Some Nepal Acts, 2057
∑ Inserted by the Act Amending Some Nepal Acts, 2064.
# Amended by the First Amendment
∑ Inserted by the Act Amending Some Nepal Acts, 2064.
to such industry within sixty days after an application to that effect has been duly submitted.
Provided that no reimbursement will be made if an application to that effect is not submitted within one year from the date of sale.
#( x) The customs duties, sales tax, excise duty and premium levied on the production materials of intermediate goods to be utilized for the
production of exportable industrial goods, and the sales tax and excise duty levied on the production shall be reimbursed to the concerned
industry producing the intermediate goods on the basis of the quantity of export, within sixty days from the date of sale. Provided that no reimbursement shall be made if an application for the same is not made within one year from the date of export.
#( y) No tax, fee or charge of any kind shall be levied on the machine, tool, equipment, machinery and raw material, to employed by an Export
Promotion Industry as well as on the products of such industry. Provided that if for any reason, any product of such industry is
required to be sold within the country, tax, fee or charge thereof shall be required to be paid on the basis of the quantity of sale.
* (z) An industry will be entitled, for the purpose of the income tax, to deduct the amount of expenses incurred by it for the long-term benefit provided
to its workers and employees including housing, life, insurance, health facilities, education and training.
*( z1) The rate of customs to be levied on the basic raw materials which are not produced in Nepal and are required for the production of industrial
machinery or of any other goods may not be more that the rate of import duty that may be levied on the import of industrial machinery or ready
made goods as produced with the use of such raw materials.
# Amended by the First Amendment
* Inserted by the First Amendment
*( z2) If an industry producing intermediate goods sell its products to any other industry producing finished goods, the sales tax and excise duty to
be levied on such products will be allowed to be adjusted on the basis of the quantity utilized by the industry producing the finished goods.
Provided that such a finished good producing industry shall be required to have been registered for the purpose of sales tax and excise duty
Notwithstanding anything contained in the laws relating to income tax, sales tax, excise duty and customs duties and in any other existing laws, an industry
shall be entitled to receive the following facilities and concessions:-
(a) ……. ◊
@ (b) ————–
(c)……
∝
◊ Deleted by Financial,2065
@ Deleted by the First Amendment
(d)…… ∝
(e)…… ∝
#( f)
Any industry, established in any Remote, Undeveloped, and Underdeveloped Areas as enlisted in Annex-3, other than cigarettes, bidi, cigar, chewing tobacco, khaini industries and industries producing other goods of a similar nature utilizing tobacco as their basic raw material, and industries producing alcohol or beer, shall be granted a rebate of thirty, twenty-five and twenty percent of the income tax respectively and
∝ ……….thirty-five, twenty-five and fifteen percent of
excise duty respectively for a period of ten years from the date of
operation.
(g) Fruit based fruit processing and cider and wine industries with a fixed asset of up to two million five hundred thousand rupees established in
Mugu, Humla, Jamla, Mustang, Manang, Solukhumbhu, Sankhuwasabha and Taplejung districts shall be entitled to an excise duty and sales tax exemption for a period of ten years, and fruit based alcohol industries shall be entitled to excise duty and sales tax exemption for a period of five years. On completion of such exemption period, Government of Nepal may grant excise duty and sales tax exemption to the fruit based alcohol industries for up to an additional
period of three years.
_______________________
∝ Deleted by Income Tax Act,2058
∝ Deleted by Income Tax Act,2058
∝ Deleted by Income Tax Act,2058
# Amended by the First Amendment
∝ Deleted by Income Tax Act,2058
(h) While calculation depreciation on the fixed assets, industries shall be entitled to add on third to the rate or depreciation allowed under the
existing income tax laws.
@ (i)
………….
(j)……… ∝
(k) Permission shall be granted for a reduction of up to 50 percent from the taxable income for the investment of an industry on process or
equipment, which has the objective of controlling pollution or which may have minimum effect on the environment. Such remission may be
deducted on a lumpsum or on an installment basis within a period of three years.
(l) ………. ∝
(m) ……………. @
(n) After an industry comes into operation, 10 percent of the gross profit shall be allowed as a deduction against taxable income on account of
expenses related with technology, product development and efficiency improvement.
(O)………. ×
(p)…..
∝
(q)…… ∝
(r)….. ∝
(s) ….∝
______________________
@ Deleted by the First Amendment
∝ Deleted by Income Tax Act,2058
@ Deleted by the First Amendment
× Deleted by Amending Some Nepal Acts, 2057
∝ Deleted by Income Tax Act,2058
(t)…… ×
(u) the customs duty, sales tax, excise duty and premium levied on ∑ packing materials raw materials and auxiliary raw materials, etc.,
utilized by any industry in connection with its product during its production shall be reimbursed on the basis of the quantity of the export.
Such reimbursement shall be made to the exporter within sixty days after an application to that effect has been duly submitted.
Provided that no reimbursement will be made if an application to that effect is not submitted within one year from the date of export.
# (v) In cases where any industry sells its products in the Export Promotion House, the customs duties and sales tax levied on the raw materials
imported for producing the products so sold as well as the sales tax and excise duty levied on the products so produced shall be reimbursed to
the concerned industry on the basis of the quantity of sale and export.
Explanation: For the purposes of this clause, the words “Export Promotion House” mean a company, firm, or co-operative body established as prescribed with the objective of gathering the products of the industries established in Nepal and exporting them to foreign countries.
(w) If any industry sells its product within Nepal in any foreign currency, the excise duty, sales tax and premium levied on such product and customs duty, excise duty and sales tax levied on ∑ packing materials, the raw materials, auxiliary raw materials, etc. utilized in such product shall be reimbursed. The revenue to be so reimbursed shall be refunded
× Deleted by Amending Some Nepal Acts, 2057
∑ Inserted by the Act Amending Some Nepal Acts, 2064.
# Amended by the First Amendment
∑ Inserted by the Act Amending Some Nepal Acts, 2064.
to such industry within sixty days after an application to that effect has been duly submitted.
Provided that no reimbursement will be made if an application to that effect is not submitted within one year from the date of sale.
#( x) The customs duties, sales tax, excise duty and premium levied on the production materials of intermediate goods to be utilized for the
production of exportable industrial goods, and the sales tax and excise duty levied on the production shall be reimbursed to the concerned
industry producing the intermediate goods on the basis of the quantity of export, within sixty days from the date of sale. Provided that no reimbursement shall be made if an application for the same is not made within one year from the date of export.
#( y) No tax, fee or charge of any kind shall be levied on the machine, tool, equipment, machinery and raw material, to employed by an Export
Promotion Industry as well as on the products of such industry. Provided that if for any reason, any product of such industry is
required to be sold within the country, tax, fee or charge thereof shall be required to be paid on the basis of the quantity of sale.
* (z) An industry will be entitled, for the purpose of the income tax, to deduct the amount of expenses incurred by it for the long-term benefit provided
to its workers and employees including housing, life, insurance, health facilities, education and training.
*( z1) The rate of customs to be levied on the basic raw materials which are not produced in Nepal and are required for the production of industrial
machinery or of any other goods may not be more that the rate of import duty that may be levied on the import of industrial machinery or ready
made goods as produced with the use of such raw materials.
# Amended by the First Amendment
* Inserted by the First Amendment
*( z2) If an industry producing intermediate goods sell its products to any other industry producing finished goods, the sales tax and excise duty to
be levied on such products will be allowed to be adjusted on the basis of the quantity utilized by the industry producing the finished goods.
Provided that such a finished good producing industry shall be required to have been registered for the purpose of sales tax and excise duty