Reduce income tax of banks and financial institutions _CBFIN

May Tue 2022 02:49:25

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Reduce income tax of banks and financial institutions _CBFIN

Kathmandu. Umbrella Institution of Banks and Financial Institutions Operating in Nepal - Confederation of Banks and Financial Institutions Nepal (CBFIN) has submitted institutional suggestions to the Ministry of Finance on various issues to be addressed in the budget of the coming Fiscal Year 2079/80.

CBFIN suggested for the budget that the income tax (corporate tax) paid by banks and financial institutions should be reduced from 30 percent to 25 percent like other businesses, and that the cost of opening a branch in a sector defined by the National Bank to increase banking access would be higher. It has been suggested that 10 percent discount should be given in the rate.

Suggestions should be made to deduct 100% of all expenses incurred by banks and financial institutions for the purpose of income tax calculation under the Institutional Social Responsibility Sister Program (CSR Fund). It is suggested that arrangements should be made to operate the account. 

For the forthcoming budget, Sivifin should bring a policy to involve Nepali manpower abroad for employment in the social security fund for the systematic entry of remittances through banking channels. It has been suggested that 10 percent reserve should be allocated in the IPO and the traditional system of capital expenditure and payment should be extensively improved and strict method should be adopted for its implementation.