- This year, Tax Freedom day falls on Ashoj 3rd, 66 days into the year (Nepali Fiscal Year Starts at July 16, 2016 and ends at July 15, 2017)
- 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. 117.408 billion on direct taxes and Rs. 303.689 billion on Indirect taxes, for a total of more than Rs. 421.097 billion, or 17.7 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 (July 16) to determine Tax Freedom Day. It takes all direct and indirect taxes collected within a year.
Nepalese spent Rs. 117.408 billion on direct taxes and Rs. 303.689 billion on Indirect taxes, for a total of more than Rs. 421.097 billion, or 17.7 percent of the nation’s income. Tax Freedom Day falls on Ashoj 3rd (September 19) 66 days into the year.
Payment of Taxes
In FY 2073/74 (2016/17), Nepalese worked 18 days to pay direct taxes, 2 days to pay property taxes, 32 days to pay tax on goods & services and 13 days to pay tax on export and others.
Tax Payment Vs Basic Needs Consumption
In Nepal, people pay Rs. 421.097 billion Tax and spent Rs. 329.137 billion on food grains. It shows Nepalese spent more on taxes than in their daily meal. In numerator, we take every tax collected by the Nepal Government and in denominator, we take national income of Nepal. Where national income is taken from the published report of Central Bank- Nepal Rastra Bank (NRB). Any fraction of a day is rounded up to the next calendar day.