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Prime Minister of Nepal Pushpa Kamal Dahal, who is on a four-day official visit to India, is scheduled to hold important bilateral meetings today. The prime minister is slated to visit the Samadhi of Mahatma Gandhi at Raj Ghat, and lay a wreath at the memorial this morning. Shortly, he will hold a meeting with his Indian counterpart Narendra Modi at Hyderabad House. PM Dahal will address a joint press conference organized after the meeting. The meeting will also be followed by delegation-level talks focusing on mutual interests between the two countries. Other issues to be discussed are energy, electricity trade, commerce and air entry routes, and necessary agreements will take place, it has been said. He will attend a luncheon hosted today in his honor by the Prime Minister of India. The PM is scheduled to pay courtesy calls on the President of India, Droupadi Murmu, and Vice President Jagdeep Dhankhar. He will address the Nepal-India Business Summit in New Delhi co-organized by the Federation of Nepalese Chambers of Commerce and Industry and the Confederation of Indian Industries this evening, and interact with business leaders of both the countries. PM Dahal is scheduled to visit Indore, and meet with Governor of Madhya Pradesh Mangubhai C. Patel. He is scheduled to return home at 4: 20 pm on June 3.

eSewa Money Transfer announced the winner of the much-anticipated ‘Mero Digital Desh’ campaign, amidst a program. The company announced the winner via a digital lucky draw via live broadcast from their Facebook and TikTok on May 26.  Purna Bahadur Shrestha, residing in UAE, was selected as the bumper prize winner of a brand new two-and-a-half-storied house built on an area of three aana in Imadol, Mahalakshmi Municipality-4, Lalitpur. He had sent money from the UAE to the bank account of his father.  ‘Mero Digital Desh’ campaign was initiated eight months ago on 23 Sept 2022, with the motive to promote formal remittances backed by the seamless digital medium. As part of this initiative, monthly winners were chosen among Nepalis residing in different parts of the world who were sending remittances digitally using eSewa Money Transfer to the Bank Account or eSewa Wallet of the beneficiary. 

The Nepal Stock Exchange (NEPSE) plunged by 38. 83 points to close at 1,849.79 points on Wednesday. Similarly, the sensitive index dropped by 7. 28 points to close at 353. 43 points. A total of 8,736,128-unit shares of 262 companies were traded for Rs 2. 31 billion. Meanwhile, Aatmanirbhar Laghubitta Bittiya Sanstha Limited was the top gainer today with its price surging by 10. 00 percent. Likewise, Unilever Nepal Limited was the top loser with its price dropped by 10. 00 percent. At the end of the day, the total market capitalization stood at Rs 2. 70 trillion.

State Minister for External Affairs Meenakshi Lekhi welcomed Prime Minister Pushpa Kamal Dahal at the New Delhi-based Indira Gandhi International Airport on Wednesday. Prime Minister Dahal had left for India on a four-day official visit at the invitation of his Indian counterpart Narendra Modi this afternoon. He will hold a bilateral meeting with Modi at the Hyderabad House on Thursday. The prime minister will call on Vice President Jagdeep Dhankhar on Thursday and President Droupadi Murmu on Friday. Earlier, the then Prime Minister KP Sharma Oli was welcomed by foreign secretary and Sher Bahadur Deuba by state minister for tourism.    

A day after presenting his first budget, Finance Minister Dr. Prakash Sharan Mahat defended the budget announcement on the constituency infrastructure development program, changes in tax arrangements on the import of electric vehicles (EVs), and the capital gains tax (CGT) imposed on the mergers & acquisitions (M&As) and further public offerings (FPOs) of banks and financial institutions. In a post-budget press meet on Tuesday, Mahat said that increasing tax on EVs up to 100 KWs ‘does not mean the government is discouraging the usage of EVs’. The budget for FY 2023/24 has imposed a 5 percent customs duty and 10 percent excise duty on EVs of 50-100 KWs, while reducing the customs duty and excise duty on electric vehicles of 100-200 KW. EV dealers accused the government has paid attention to the demands of influential importers of internal combustion engine automobiles and that the decision will drive the prices of EVs up to 100 KW by Rs 700,000 to Rs 900,000 per unit. Mahat also said that large funds have been allocated to expedite the development of big projects to fulfill the needs of the country. "We are building projects like the Sunkoshi Marin Diversion Multipurpose Project and Bheri Babai Diversion Multipurpose Project with our own investment. A huge amount of money has already been spent on the projects," he said Mahat during the press meet held at the Finance Ministry. "The size of the budget increased to expedite the projects across the country." In the next fiscal year's budget, the government has prioritized the development of large and national pride projects including Sikta Irrigation, Bheri Babai, Sunkoshi Marin, and Naubasta Industrial Park in Banke, among others. The finance minister also claimed that the government has 'not levied taxes on the income from M&As and FPOs of banks and financial institutions. He asked the stock investors 'not to think that they have been taxed separately' as the arrangements have come per the provisions of the Financial Act which was also recommended in the Auditor General's report. The imposition of the capital gains tax on the income from M&As and FPOs has received widespread criticism from stock investors who see the new tax arrangement as unhelpful to end the downturn in the capital market. Mahat also tried to defend the announcement to revive the constituency infrastructure development fund. In the budget speech, he announced that members of parliament will receive Rs 50m in the current fiscal year for development works in their respective constituencies. Many see the controversial program, which was scrapped by the then finance minister Bishnu Paudel two years ago, as fostering corruption in the country. The finance minister insisted that the program incorporated in the next fiscal year's budget 'is not the Constituency Development Fund but the Parliamentary Constituency Development Program' and that MPs will not have a big role to implement the program. "It is the concerned ministry that will implement the program," he said. In the budget for FY 2023/24, the government has increased taxes on the number of goods and services and introduced new taxes such as the 'luxury tax'. Similarly, the exemptions of Value Added Tax (VAT) and excise duty provided to various goods and services have been scrapped. Finance Minister Dr. Mahat on Monday announced the scrapping of VAT exemptions on 170 types of goods and services and excise duty on 370 types of goods and services. A two percent ‘luxury tax’ was imposed on services provided by five-star or above hotels and resorts; imported liquor; diamonds; pearls and precious stones embedded with gold and jewelry worth more than Rs 1 million. Those going for foreign trips need to pay a five percent tourism tax on the trip package. Packages for foreign visits by Nepalis will also be expensive as the financial bill has made a provision that Nepalis going abroad for a visit will have to pay as much as five percent of the total payment they make as ‘tourist tax.’ The companies facilitating foreign employment need to pay one percent of the total fee they charge to the migrant workers as foreign employment service charges. Excise duty has been hiked on beer and liquors as well. Income tax is required to be paid by high earners-above Rs five million a year will have to pay more income taxes. Analysts say the hike in taxes can affect economic growth at a time when the country's economy is surrounded by multiple challenges. “Taxation is one of the tools to support growth,” said an economist. “But increasing the taxes is contrary to growth expectations.” The government has targeted a modest growth of six percent in the next fiscal year 2023/24. For the current fiscal year, the growth target was eight percent but the economy slowed drastically due to external and internal economic headwinds stemming from the depletion of forex reserves, the Russia-Ukraine war, surging inflation, and the liquidity crisis. The government has sought to discourage imports of certain goods on which Nepal is more or less self-reliant, by discontinuing any tax incentive for their imports. The budget announced that imported cement, iron and steel, iron and plastic pipes, zinc sheets, and electric cables won’t get any customs duty exemption. “Even though the government’s policy to support domestic industries by removing any tax exemptions on imported goods is good, domestic industries are also not getting any other support through tax policy,” another economist said. On the other hand, the government’s spending is also sure to decline with the government downsizing the size of the budget itself. There is a question about whether the reduced allocation will also be spent like in the past years. The government’s capital spending as of May 29 stands at just 36 percent, according to the Financial Comptroller General Office (FCGO). The government has also scrapped the tax and non-tax support provided to the sectors affected by the Covid-19 pandemic. “All these factors will dampen the aggregate demands in the market,” said a Former finance secretary. “The curtailed demands in the market will hit economic activities and ultimately economic growth,” he added. One of the demands that the private sector had been making for a long time is the reduction in interest rates on loans. But the government has decided to increase tax on interest income to six percentage points up from 5 percent earlier. “It is unlikely to encourage depositors from depositing money in the banks and decreasing interest rate on deposit could be major concerns,” the former finance secretary said. But Finance Minister Mahat chose to remain quiet on the matter of interest rate paving the way for the Nepal Rastra Bank to deal on the matter. “Nepal Rastra Bank will introduce a monetary policy to help attain the objective of this budget,” said Mahat.

The Janata Samajbadi Party (JSP) pulled out of the Koshi Province government on Wednesday. The party also withdrew the support extended to the government. Nirmala Limbu of the JSP was the Health Minister in the CPN-UML-led government. She was the only lawmaker to represent the JSP in the Province Assembly. Limbu participated in the government led by UML leader Hikmat Kumar Karki on January 9. Following the decision of the Province Committee meeting of the JSP, she lost her ministerial post. JSP leader Rakam Chemjong said that the meeting of the party held on Wednesday decided to recall its minister and also decided to withdraw the support extended to the government. In the 93-member Province Assembly of Koshi Province, UML has 40 lawmakers, Nepali Congress 29, CPN (Maoist Center) 13 (including speaker), Rastriya Prajatantra Party six, CPN (Unified Socialist) four and Janata Samajbadi Party has one lawmaker. Forty-seven lawmakers are needed to form the government in the province. But there are 46 lawmakers of the UML and the RPP in the province.  

Prime Minister Pushpa Kamal Dahal has left for India on a four-day official visit at the invitation of his Indian counterpart Narendra Modi on Wednesday. Leading a jumbo delegation, PM Dahal left for the southern neighbor from the Tribhuvan International Airport (TIA) this afternoon. They will land at the New Delhi-based Indira Gandhi International Airport. House of Representatives Speaker Deveraj Ghimire, National Assembly Chairman Ganesh Prasad Timilsina and ministers among others had reached the TIA to bid farewell to Prime Minister Dahal. Foreign Minister NP Saud, Finance Minister Prakash Saran Mahat, Energy Minister Shakti Bahadur Basnet, Transport Minister Prakash Jwala and Industry Minister Ramesh Rijal among others are in the delegation. During his visit, PM Dahal will hold a discussion with his Indian counterpart Modi on bilateral interests, said Saud. Other issues on the table are electricity trade, construction of transmission lines, and the inauguration of an integrated security checkpoint. The issues of promoting Indian investment in the energy and hydropower sector of Nepal, trade and transit and air entry routes will also be discussed, he said. The premiers of both the countries are scheduled to sit down and conclude the issue of air entry routes for Nepal. According to a statement issued by the Ministry of Foreign Affairs of Nepal, the PM will hold delegation-level talks with his Indian counterpart Modi at Hyderabad House on June 1. Following this, a joint press meet will be organized. It has been learnt that they will have some agreements and memorandums of understanding. The Prime Minister of India will host a luncheon in honor of the PM of Nepal and his delegation. During the visit, PM Dahal will pay courtesy calls on the President of India, Droupadi Murmu, and Vice President Jagdeep Dhankhar. He is also scheduled to address the Nepal-India Business Summit in New Delhi co-organized by the Federation of Nepalese Chambers of Commerce and Industry and the Confederation of Indian Industry, and interact with business leaders of both the countries. The PM will also interact with the Nepali community in India on the occasion of a welcome reception hosted by the Ambassador of Nepal to India Shankar Prasad Sharma. Minister for Industry, Commerce and Supplies Ramesh Rijal said that during the visit, an agreement will be signed to renew the transit treaty and to expand the additional petroleum pipelines. Similarly, there will be an agreement on the construction of the Siliguri Charali pipeline and terminal tank, the pipeline up to Lothar of Amlekhganj and the storage terminal tank. Likewise, PM Dahal is slated to lay the foundation stone for the integrated check post in Bhairahawa, and co-inaugurate the integrated check post in Nepalgunj with the PM of India Modi, he said. The issues of the construction of a dry port in Dodhara Chandani, the export of jute and opening a fertilizer industry in Nepal after importing natural gas will also be discussed, according to him. PM Dahal will return home on June 3.  

A student was found dead in the hostel of Eternal Light Public School in Nayabazaar of Kathmandu. A permanent resident of Dhading, Abhisekh Tamang (14), a fifth grader, was found dead on Tuesday, District Police Range, Kathmandu spokesperson Sitaram Rijal said. “Tamang was found hanging in his room last night,” he said. Further investigation into the case is underway, police said.