Nepal government introduces Inheritance Tax

Nepal government introduces Inheritance Tax
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On Friday, Finance Minister Yuba Raj Khatiwada stated that the government was contemplating including heritage or property tax in a request to increase the parameter of taxes on wealth.

Talking at a gathering arranged by Nepal Chamber of Commerce in the capital, Minister Khatiwada stated that his ministry, the Ministry of Finance, is investigating several opportunities for estate tax although it has still to lead to a conclusion on that topic.

“We are still in the discussion phase on the modality of the inheritance tax. We haven’t reached to a conclusion yet,” Khatiwada stated.

Khatiwada stated general inquiries will be required before introducing such tax.

Designated one of the several unpopular taxes, inheritance tax is levied on assets received from a person who has died.

Such tax rates are decided based on several factors including the position of the residence/property, the entire value of the inheritance, and the beneficiary’s relation to the deceased. Many countries over the world including Britain and Japan have such tax. The tax is both forced as duty on the estate of a deceased or as an inheritance tax on the recipient.

Minister Khatiwada didn’t go in the details but stated that such tax had been needed to increase the country’s economy. He stated that such a tax would not obtain big differences for businesses.

The plan for inheritance tax, which is being offered at a time when the three lines of government are being analyzed for creating a ‘tax terror’ to reach their resource requirements, is required to face strong resistance as many are unhappy with the abuse of government funds by administrators in luxury vehicles, international junkets and paying perks to people’s representatives.

As the country starts on a mission to federalism, the three tiers of government are below enormous stress to managing funds for their operations. Local and provincial governments have recently been forcing taxes arbitrarily to reach their funds’ requirements.

Some local bodies have forced taxes on local merchants. In many cases, the three layers of government have forced taxes without statutory discussions usually forcing people to pay double taxes.

Reason for the increasing public violence is the government’s tax policies that are directed at relieving the rich at the cost of the poor.

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