Nepal Bankers’ Association (NBA) has demanded to drop the corporate tax rate on banks to 20 percent from prevailing 40 percent. A delegation led by Ranjan Singh Bhandari, President of NBA called on Finance Minister Shankar Prasad Koirala last week and made the demand. During the meeting, Bhandari stated that the banking sector is fully transparent and has been major contributor in the tax revenue collection of the country. 

 

Similarly, the association has demanded to waive the capital gain tax imposed on the sale of the collateral property. It also demanded for the preferential right of the bank on the collateral accepted for the loan. 

 

On the occasion, the association also asked for written promise to exempt the tax on the donation that the BFIs make to political parties.