Govt mulls flexibility in VAT rate in upcoming budget

KATHMANDU, May 27: The government is weighing revisions to the value added tax (VAT) regime in response to long-standing demands from the private sector for multiple VAT rates. Officials at the Ministry of Finance (MoF) indicated that the government is likely to reduce the VAT rate to 10 percent from the existing 13 percent in the budget announcement scheduled for Friday. More than two decades ago, the VAT rate stood at 10 percent.