July 18: The budget announced by the government on May 29 is being implemented from the beginning of the new fiscal year on July 17. With the implementation of the new budget from Monday, many previous arrangements have been changed.

The luxury tax arranged in the budget and the 5 percent tourism fee on foreign tour packages have also been implemented from Monday. Likewise, value added tax (VAT) has been imposed on airfares effective from Monday.

In the Finance Act 2080, it is mentioned that VAT on airfare must be registered and collected within 30 days from the date that the taxable amount exceeds the limit of Rs 2 million.

According to the Inland Revenue Department, air transport service providers should apply for registration for the Value Added Tax.

A 2 percent luxury tax has also been implemented on services provided by five-star hotels, restaurants and resorts as well as on luxury items worth more than Rs 1 million.

Imported liquor and diamond, pearl, stone-studded gold or precious metals, jewelery worth more than Rs 1 million are also taxed at the same rate. Likewise, a 5 percent tourism fee on foreign tour packages sold by travel agencies has also been levied from Monday.

Similarly, 39 percent income tax has come into action for annual salary above Rs 5 million.

From Monday, the Department of Customs has put into effect a new provision under which the name of the importers and distributors should be labeled on all imported goods. The department has implemented the provisions under sub-section (4) of section 18 of Schedule 1 of the Finance Act 2080.

As per the Finance Act 2080, the goods ready for import must be labeled with full details of the importer and market distributor before being sent for distribution in the market starting from July 17. For that, the department has already informed the stakeholders about how to label and what details to mention.

Raju Prasad Pyakurel, director of the department, said that action will be taken if goods are sold and distributed in the market without labeling.

Chief Secretary of the Government of Nepal Dr Baikuntha Aryal has instructed the secretaries of various ministries and agencies to work effectively in the implementation of the budget and the government’s policies and programs for the fiscal year 2023/23.

On the first day of the new fiscal year, Aryal held discussions with the officials of various ministries at Singha Darbar. In the meeting, Chief Secretary Aryal said that there should be no compromise in formulation of plans and implementation as per the budget and policies and programs of the government. According to a secretary who attended the meeting, there was a discussion to determine the necessary plans to meet the target set by the government and pay attention to the arrears.