Nepal Economic Digest (May 30, 2020)


May 30, 2020


Nepal Economic Digest (May 30, 2020)

KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.

Budget size reduction need of the hour: Finance Minister Khatiwada

Finance Minister Dr. Yubaraj Khatiwada said that the budget for the coming fiscal year has been reduced by about four percent as compared to the current fiscal year as it was the need of the hour.

Speaking at a press conference on Friday, Finance Minister Khatiwada clarified that the size of the budget could not be increased in the current situation. “The small size of the budget means that we are not in a normal position.

Under normal circumstances, the size of the budget will increase by at least 10 to 14 percent taking inflation into account ,” he said.

Saying that the government’s spending and investment should be increased so that private sector investment can play a complementary role, Minister Khatiwada said that hat this would lead us to higher economic growth.

Gold becomes dearer by Rs 2,332 per tola as duty hiked

Gold price will be going high following a hike in customs duty as announced in the budget for the fiscal year 2020/21.

The price of the precious yellow metal will increase by Rs 2,332 per tola once the trading halted due to the lockdown resumes.

The government has increased the customs duty from Rs 6,500 to Rs 8,500 per 10 grams after the budget. Similarly, the customs duty on silver has been increased by Rs 10,000 to Rs 85,000 per kg.

Govt hikes duty on petroleum products

Finance Minister Yuba Raj Khatiwada has increased duty on the petroleum products by Rs 10 per liter.

With the hike, the taxation of petrol has gone up by Rs 25.20 per liter and that of diesel and kerosene by Rs 12 per liter each.

Earlier, the taxation on petrol was put at Rs 15.20 per liter and that of diesel and kerosene Rs 2 per liter each. With the increase in taxation with a wide margin, the taxation amount will come around Rs 2 billion per month.

On the other hand, the government has remitted the 10 percent duty being imposed on the avian fuel for infrastructure development.

Under this topic, the government had been collecting around 160 million per month. With the decision to remove tax on the aviation fuel and increase on the petroleum products, the government will now collect Rs 1.75 billion more tax per month.

Vishal Group supports medical supplies to Health Ministry

Vishal Group, through its CSR unit, VG Foundation, handed over medical supplies to the Ministry of Health on Friday.

The medical supplies that include 500 units PPE kits, 200 units infrared thermometers, 8950 units N95 masks and others were handed over in presence of Health Minister Bhanu Bhakta Dhakal and Health Secretary Yadav Prasad Koirala.

“We are incredibly proud of all the people who are committed to providing support to those dealing with this crisis and experiencing its impact,” said Vishal Group said in a press release.

(Compiled and prepared by Swastik Aryal and Nitish Lal Shrestha)

Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.

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