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 Nepal is really a new one now as she has already become a federal democratic republic.
New Nepal will definitely have many things new. Let's see what new will be there in the tax system. Even the old parliamentary constitutional monarchical Nepal that had replaced absolute monarchical older system by Jana Andolan-1 had introduced some new taxes - the prominent example being the VAT. The present new Nepal is achieved by Jana Andolan-2. Hence it is going to be more revolutionary and more progressive. A progressive system brought about by a huge revolution will definitely have a progressive revolutionary tax system.
Therefore, paying VA Tax alone will not be enough; you will have to pay YCL Tax as well. If you are doing usiness and not paying professional tax, that will be very unprofessional of you. So you will have to start paying it now. Are you getting your raw material from another district? Now that's going to be categorized as import from a different province. So, you will have to pay inter-province import tax in your province. If the people in the district from where you are importing the raw material decide to set up the processing factory there, then you may also have to pay export tax on the raw material you take out from that district.
To run the business you must have employees to whom you pay salary. For that you will now have to pay income tax on the salary the staff members get. This may be legally called the pay-roll tax and it is not entirely new as businessmen in a number of other countries are already paying this tax. Similar likely new tax for Nepal but not for the world is turnover tax. Then there may be cash handling tax to be paid when you draw more than a specified sum from the bank.
When you take your client to a hotel for business lunch or dinner, obviously you are paying 10 percent service charge, and food and entertainment tax. In some other countries, they pay fringe benefit tax as well when they go out of station for business. Hopefully, the new Nepal will have this tax as well.
If you get a big amount as gift or lottery, you will have to pay gift tax and income tax. If you have any wealth, you will have to pay wealth tax. To reduce tension and for entertainment, if you go to cinema or resort, you will have to pay entertainment tax there. Have you purchased a house? Then pay stamp duty and registration fee. How will you travel? By public transport? Then you will have to pay surcharge.
But there is nothing much new in all these taxes as they are already in Nepal or elsewhere. Therefore, to reflect the newness in the New Nepal, the new government will surely bring some new axes as well. The examples may be like these:
You have to pay not only income tax but outgo tax as well, and not only district tax but interdistrict tax as well. Then there will be country tax-city tax, back tax-front tax, side tax-up tax-down tax, interest tax-uninterest tax, thumbtacks-carpet tacks, stadium tax-flat tax-corporate tax, house tax-housewife tax-children tax, capital gain tax-capital loss tax, turnover tax-overturn tax-under turn tax-u turn tax, parking fee-not parking fee, stray dogs elimination fee, VAT 13- VAT 69 excise duty, life insurance -non-life insurance- health insurance tax, dental insurance-mental insurance-rental insurance-reassurance fees, floor rental tax, chair rental charge, staff overtime or under-time, water, electricity, laundry, shoe police fees, miscellaneous and finally etc. tax.
Don't panic. The New Nepal will surely not have profit tax. After paying all these tax, if someone still makes profit, he will be provided a big medal in the annual Republic Day bash at the Tundikhel.
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