Kathmandu. Income tax paid by commercial banks is decreasing. According to the Nepal Bankers Association, the banks have paid 19.99 billion 75 lakh rupees in taxes till the third quarter of the current financial year. The income tax is 87.37 percent less than the third quarter of the financial year 2077/78. During that period, banks paid 21.91 billion 20 million rupees in taxes.
In addition, compared to the year 2078/79, the income tax paid by banks has decreased by 5.51 percent. Whereas in the year 2078/79, banks paid 21 billion 165 million rupees in taxes. According to the Income Tax Act 2078, banks and financial institutions have to pay 30% tax on their income. There is a provision that banks have to pay 30% income tax to the government after allocating 10% employee bonus to the after-tax profit.
In the nine months of the current financial year, i.e. till the end of March, commercial banks that are currently operating have paid about 20 billion rupees in income tax. Nabil Bank is among the highest income tax payers. During the period under review, Nabil Bank has remitted income tax of 2.19 billion 2.7 million rupees to the government.