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Institutional income tax collection has declined over the first six months of the current fiscal year 2024/25. The half-yearly review of the budget for the fiscal year 2024/25 released recently by the Ministry of Finance shows income tax collection from institutional taxpayers fell by 11.9 percent to Rs 63.79bn. Such collection was Rs 69.04bn in the review period of the previous fiscal year. This is mainly due to reduced tax contributions from government-owned enterprises and public limited companies.

Institutional income tax refers to the tax paid by companies and institutions to the government. If these entities generate higher profits, their tax contributions typically increase and vice versa.  Total income tax collection over the first six months of  2024/25 increased by 2.47 percent to Rs 139.2bn.  Data shows although private limited companies have shown a significant increase in tax contributions, the decline in payments from government entities and public limited companies has impacted overall institutional tax collection.

According to the mid-term review of the fiscal budget, tax contributions by government companies fell by 18.15 percent to Rs 3.58bn, while those from public limited companies dropped by a whopping 35.29 percent to Rs 26.51. In the review period of the previous fiscal year, government companies and public limited companies had contributed Rs 4.38bn and Rs 40.51bn as income tax to state coffers. 

Income tax contribution by private limited companies, however, grew by 36.67 percent to Rs 26.46bn. Likewise, such contributions by other companies increased by 7.91 percent to Rs 7.53bn. Individual income tax collection increased by 21.18 percent to Rs 50.99bn, while income tax from investment also went up by 10.74 percent to Rs 27.37bn.  Finance ministry officials say the decline in institutional income tax collection is largely due to reduced revenues in the telecommunications sector. Additionally, the decrease in earnings of government institutions and public limited companies has also contributed to this trend. 

Revenue of telecom companies have been consistently on the decline over the past few years due mainly to reduction in revenue from international calling. Similarly, the net profit of banks decreased by 4.62 percent in the second quarter of the current fiscal year. Financial reports for the second quarter of 2024/25 shows that out of 20 commercial banks in the country, only 11 reported growth in profit. 

Despite high liquidity in banks, banks have not been struggling to extend credit. Slow credit growth and rising non-performing loan (NPL) levels have hit both revenue and profitability of banks. Interest income of Class ‘A’ banks, for example, fell by 14.7 percent in the first half of 2024/25.

The price of gold has increased by Rs 400 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 170, 200 per tola today. It was traded at Rs 169, 800 per tola on Thursday.

Similarly, the price of silver has increased by Rs 5 and is being traded at Rs 1, 970 per tola today.

The Department of Roads (DoR) has finalized the Detailed Project Report (DPR) for the reconstruction of the BP highway section between Bhakunde Bensi and Nepalthok, which suffered extensive damage from floods and landslides last September

As per the DPR, the reconstruction of the 28-km stretch is estimated to cost Rs 9.66bn and is expected to take three years to complete. Meanwhile, the DoR plans to build necessary infrastructure on the damaged section so that the road is operable even during monsoon rains. 

The road section from Chowkidanada in Namo Buddha to Kaladhunga in Roshi Rural Municipality is among the worst damaged. With roads completely wiped away in different sections, the DoR has constructed diversions through the river to allow movement of vehicles. Since these diversions will be of no use during monsoon, the DoR is planning to build necessary infrastructure to make the road operable throughout the year.

The DPR prepared by the Division Road Office in Bhaktapur under the DoR states that three types of walls—RCC retaining, plum and gabion—will have to be built along the road section. Additionally, the 32-km road will be expanded to two lanes. DoR has also incorporated flood damage mitigation methods into the design.

The highway constructed with assistance from the government of Japan spans 160 km and connects Kathmandu to the central Tarai and Koshi Province. Since the highway had a width of more than one lane but less than two lanes, it was creating difficulty for two-way traffic. The DoR has now proposed widening the road to two lanes (nine meters wide) to facilitate smooth flow of traffic in both directions.

Since the highway runs alongside riverbanks, the reconstruction plan also includes scour depth protection measures to prevent river erosion beneath the road surface. This, however, is not the first time that the government considered upgrading the highway into two lanes. The government earlier conducted a study to upgrade the highway into two lanes and even sought the opinion of the Japanese government for the same. However,  the plan failed to take off due to the Covid-19 pandemic. The highway project, which began in 1996 and was completed in 2015 with Japanese assistance totaling nearly Rs 20bn, is one of Nepal's most expensive infrastructure projects. The highway links Dhulikhel on the Araniko highway with Bardibas on the East-West highway.

Kamal Magar of Narayanatar, Kathmandu has become the third weekly winner of  the annual subscription campaign, “Jasle Padchha, Awasya Parchha” launched by Annapurna Media Network across the country.

In the weekly lucky draw held at the Tinkune-based headquarters of Annapurna Media Network on Thursday, Kamal Magar of Narayantar with receipt number 1468-81 became the winner.

Dr Manisha Ghimire, who is working at the OakMed Hospital in America, had picked Magar’s name from the lucky draw.

After being the winner, he won a Oppo mobile phone along with a voucher worth Rs 5, 000 for Tranquility Spa.

Readers renewing their subscription or becoming new annual subscribers to Annapurna Post and The Annapurna Express will receive guaranteed gifts upon subscribing.

The annual subscription fee for both newspapers is set at Rs 3,400 each.

Annual subscribers will receive a voucher worth Rs 1,500 for Wonderland, where they can enjoy thrilling games, as well as a movie voucher from INI Cinemas.

Alternatively, subscribers can opt for scratch cards offering cash discounts ranging from Rs 500 to Rs 3,400, along with INI Cinemas movie vouchers and tickets for Annapurna Cable Car.

The campaign also offers exciting weekly and monthly prizes. Weekly lucky draw winners will receive OPPO mobile phones and Rs 5,000 vouchers for Tranquility Spa.

Monthly winners will be rewarded with washing machines and Rs 5,000 Tranquility Spa vouchers. The campaign, which is valid nationwide, will run for four months.