Nepal's Finance Minister, Dr. Prakash Sharan Mahat, delivered the Budget for the fiscal year 2023/24 (2080/81 Nepal year) on 29 May 2022. The main tax measures include:

• The introduction of a new top individual income tax rate of 39% on income exceeding NPR 5 million;
• The extension of the VAT tax period for small VAT payers from 1 month to 4 months;
• The introduction of a 2% luxury tax on:
  • services provided by 5-star and higher luxury hotels and resorts;
  • imported liquor; and
  • precious ornaments valued at more than NPR 1 million;
• The introduction of a 5% foreign tourism tax levied on payments made by Nepalese tourists abroad;
• An increase in the education service tax to be paid by students studying abroad from 2% to 3% of the foreign currency received through banks; and
• The introduction of a foreign employment service charge of 1% on payments made by Nepalese migrants to companies organizing foreign employment.

The budget measures generally apply from mid-July 2023. Further details on their implementation will be published once available.