KATHMANDU: The government has announced 20 percent exemption in income tax for tourism entrepreneurs.

Unveiling the budget for the fiscal year 2077/78 on Thursday, Yuvaraj Khatiwada said that 20 percent exemption has been made in the income tax levied on airline, hotel, transport, travel and trekking.

Similarly, the time for filing value added tax and tax for tourism, transportation and cinema houses has been made quarterly.

Likewise, Finance Minister Dr. Yuvaraj Khatiwada has announced a package to boost small businesses to revive the Corona-affected economy.

He informed that 75 percent exemption has been provided to the entrepreneurs doing business up to Rs 2 million, 50 percent to those doing business from Rs 2 million to Rs 5 million and 25 percent to the taxpayers doing business from Rs 5 million to Rs 10 million.

He said that the income tax exemption period for micro-enterprises has been extended by two years to seven years and micro-enterprises run by women entrepreneurs have been extended by three years to ten years.

He also informed that the value added tax on micro insurance has been removed.