PM wrongly claims Nepal has lowest taxes

Injina Panthi / August 31, 2018

.                                                                                                                                                      Photo: Youtube

In the “Janatasanga Pradhanmantri” program aired on Nepal Television on August 22, Prime Minister KP Oli said, “We have the lowest tax rates in the world. Goods are cheapest here.”

South Asia Check has studied the tax rates in a few Asian countries:

 Countries Personal Income Tax Corporate Income Tax VAT/GST
Nepal Minimum-1% , Maximum-36% Min 20%, Max 30% 13% VAT
India Minimum 0%, Max. 30 %

(In India 4% Education and Health Cess is charged after 2,50,000/-)

 25% 28%, 18%, 12%, 5%, 0%

GST (goods and services tax)
China Min.3% Max. 35% Min.20%, max.25% VAT 0%, 6%, 11%, 13%, 17%
Bhutan Min.0% Max.25% 30% Not available
Maldives No Personal Income Tax 15%- Companies, Partnerships and other Persons

5% – Profit from sources outside Maldives

10% – Withholding tax

Min. 5%, Max.15%

 12% GST in tourism sector
Thailand Min.5%, Max.35% Min.2%, Max.20% 7% VAT

This shows the prime minister’s claim that Nepal has the lowest tax rates is wrong.

 

References:

Thailand:

The Revenue Department (VAT)  http://www.rd.go.th/publish/6043.0.html

Corporate Income Tax (http://www.rd.go.th/publish/6044.0.html)

Personal Income Tax  http://www.rd.go.th/publish/52286.0.html

India:   

Income tax department

https://www.incometaxindia.gov.in/hindi/Pages/charts-and-tables.aspx

Good and Service rate Council   http://gstcouncil.gov.in/sites/default/files/NOTIFICATION%20PDF/goods-rates-booklet-03July2017.pdf

Good and Service Rate Council http://gstcouncil.gov.in/sites/default/files/NOTIFICATION%20PDF/services-booklet-03July2017.pdf

China:

State Administration of taxation of The People Republic of China  http://www.chinatax.gov.cn/eng/n2367731/index.html

Maldives:

Maldives Inland Revenue Authority

Business Profit Tax: https://www.mira.gov.mv/Bpt.aspx

GST: https://www.mira.gov.mv/Gst.aspx

Bhutan:

Department of Revenue and Customs, Bhutan

Personal Income Tax: http://portal.drc.gov.bt/drc/node/25

Corporate Income Tax: http://portal.drc.gov.bt/drc/node/29

This material is copyrighted but may be used for any purpose by giving due credit to southasiacheck.org.
Comments

Recommended Read

NAC Managing Director Kansakar lies on camera Nepal Airlines Corporation Managing Director Sugat Ratna Kansakar speaking on Kantipur TV's Fireside program claimed that law was not breached while purchasing the wide-body Airbus aircraft. Read More
Nepali Congress was not the first party to demand federalism Tarai National Congress, a tarai-based party formed by Vedananda Jha in 1951, was the first to raise the demand for federalism in Nepal. Read More
Who should be credited for introducing health insurance program in Nepal? In an interview aired by AP1 television on August 20, Prime Minister KP Oli claimed that his party, the then CPN-UML, had introduced the health insurance program in Nepal. Read More