How much income tax paid by commercial bank of Nepal ?

May Wed 2023 04:23:36

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How much income tax paid by commercial bank of Nepal ?

Kathmandu. By the end of the current financial year 2079/80, the income tax paid by commercial banks to the government has decreased by 1.16 billion 74 lakh rupees. The data obtained from the Nepal Bankers Association has shown this. During the review period, 21 commercial banks have paid income tax of 19 billion 99 crore 75 lakh 76 thousand rupees to the government. Which is 5.59 percent less than the same period last year. During the review of last year, the commercial banks had paid 21 billion 165 million 41 thousand rupees in taxes to the government.

Banks and financial institutions have to pay 30 percent tax on their income. There is a provision for banks to pay 30% income tax to the government after allocating 10% employee bonus to the after-tax profit.

Recently, the income tax payment has decreased due to the decrease in the profit and income of the banks. Due to the recent liquidity crisis, banks had increased the interest rates on deposits. As a result, the expenses of the banks increased. However, due to lack of liquidity, the loan could not be disbursed. On top of that, due to high interest rates, financial crisis, etc., the demand for loans in banks has not increased. In addition, due to the recent financial crisis, the ability of borrowers to repay their loans has also decreased. As a result, the loan recovery of banks has decreased. Due to these reasons, the income and profit of banks has decreased. As a result, the income tax payment has also been affected, bankers say.

The total revenue collection of the government has also decreased during the review period. Banks are also in the area of paying more taxes. However, it seems that government income is also affected due to the decrease in income tax from banks.

During the review period, Nabil Bank has paid the highest amount of income tax. The said bank has paid 2 billion 19 billion 27 million rupees in income tax. Which is 52.63 percent more than last year's review period. In the third quarter of last year, the bank had submitted income tax of Rs 1.43 crore 65 lakh to the government.

NIC Asia Bank is the second highest payer of income tax to the government, the bank has paid income tax of Rs 1.72 billion 6 lakh. Global IME Bank, which is in third place, has paid income tax worth Rs. 1.70 billion.

Similarly, National Commercial Bank has paid income tax of 1.70 billion 1.6 million rupees, Nepal Investment Mega 1.53 billion 29 million rupees, and NMB 1.13 billion 2.6 million rupees. On the other hand, Standard Chartered has paid 1.11 billion 86 million rupees, Everest Bank 1.5 billion 68 million rupees and Prime Commercial Bank has submitted 1.5 billion 63 million rupees to the income tax government.