- This year, Tax Freedom day falls on Ashoj 5th (21st September) 68 days (Last Year it was 66 Days) into the year.
- Tax Freedom Day represents how long Nepalese as a whole have to work in order to pay the nation’s tax burden.
- Nepalese spent Rs. 109.720 billion on direct taxes and Rs. 384.920 billion on Indirect taxes, for a total of more than Rs. 494.639 billion, or 18.2 percent of the nation’s income.
Tax Freedom Day: Meaning
Tax Freedom Day is obtained by taking the ratio of total tax collected to the total national income of a country in any particular year. Then the ratio is multiplied by 365. The result is increased by 1 and count that number of days from Shrawn 1 (16th July) to determine Tax Freedom Day. It takes all direct and indirect taxes collected within a year.
Nepalese spent Rs. 109.720 billion on direct taxes and Rs. 384.920 billion on Indirect taxes, for a total of more than Rs. 494.639 billion, or 18.2 percent of the nation’s income. Tax Freedom Day falls on Ashoj 5th (21st September), 68 days into the year.
Payment of Taxes
In 2017/18, Nepalese worked 15 days to pay direct taxes, 2 days to pay property taxes, 36 days to pay tax on goods & services and 15 days to pay tax on export and others.
Tax Payment Vs Basic Needs Consumption
In Nepal, people pay Rs. 494.639 billion tax and spent Rs. 358.459 billion on rice grains. It shows Nepalese spent more on taxes than in their daily consumable rice.
In numerator, we take every tax collected by the government and in denominator, we take national income of Nepal. Where national income is calculated by multiplying per capita GDP and total population. Leap days are excluded to allow comparison across years, and any fraction of a day is rounded up to the next calendar day.
- Data for calculation were obtained from
- Government of Nepal, Ministry of Finance
- Financial Comptroller General Office
- Central Bureau of Statistics
- Economic Survey 2016/17, MoF (Unofficial)
- Nepal Rastra Bank
- Self-working Papers