Encouragement of digital payments: Provision of 10 percent VAT rebate

The government has taken important steps to widen the use of digital payments in the Nepalese economy. Through the budget of the current fiscal year 2083/84, Finance Minister Swarnim Wagle has announced an immediate 10 percent VAT rebate to consumers who pay through digital means while purchasing goods and services. While presenting the budget at the joint meeting of the Federal Parliament, Finance Minister Wagle expressed his belief that this arrangement will encourage digital transactions and gradually end the trend of cash-based economy. The implementation of this new policy is expected to encourage common citizens to use digital payment methods. Besides, it will also help in increasing transparency and making economic activities more orderly.