Last Updated on by ICT Byte
In a major relief for the startup ecosystem, the Government of Nepal has announced a five-year income tax exemption for startup businesses with an annual turnover of up to NPR 10 crore as part of the national budget for Fiscal Year 2082/83.
This policy aims to promote entrepreneurship and encourage the youth to engage in innovative business ventures. The government stated that the move is designed to support the growth of the startup sector, which has been expanding in recent years despite facing significant challenges.
Although Nepal has witnessed a surge in startup activities, many businesses have struggled to scale due to heavy tax burdens, lack of investment, and policy uncertainty. The new income tax waiver is expected to ease financial pressure on budding entrepreneurs and stimulate long-term business sustainability.
“The government is committed to fostering a startup-friendly environment by providing tax incentives and removing key barriers faced by young entrepreneurs,” said Finance Minister Bishnu Poudel during the budget presentation.
The announcement marks a positive step towards building a more vibrant and resilient startup ecosystem in Nepal.
