KATHMANDU: The Nepal Association for Software and IT Services Companies (NAS-IT) has welcomed the government’s decision to prioritize the information technology sector as a key pillar of economic transformation in the budget for fiscal year 2026/27.
In a statement issued on Wednesday, NAS-IT said the budget’s policy measures would help boost Nepal’s IT exports, generate foreign exchange earnings, create employment opportunities, and strengthen the country’s position as a global destination for digital services.
The association described several budget announcements as significant achievements for the development of the IT industry. These include tax concessions on income generated from the export of information technology services, improvements in tax management related to sweat equity provided to IT professionals, and the reduction of the highest personal income tax rate from 39 percent to 29 percent.
NAS-IT also welcomed measures aimed at streamlining and automating the Value Added Tax (VAT) refund process, as well as programs promoting artificial intelligence, innovation, and the digital economy.
According to the association, such initiatives are expected to create a more competitive environment for Nepal’s growing technology sector and encourage greater investment in digital services.
The organization reiterated its commitment to helping establish Nepal as a leading digital and IT services hub in South Asia while creating high-paying employment opportunities for Nepali youth.
However, NAS-IT also noted that several important policy reforms and structural arrangements related to the IT sector, which had been included in the government’s 100-point agenda and national commitment paper, were not incorporated into the new budget. The association urged the government to address those issues through future policy decisions and implementation measures.
Comment