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‘भारतले नै नभनेको कुरा प्रधानमन्त्रीले भन्नुभयो’

Prime Minister’s Statement on Nepal Encroaching Indian Territory Surprises Communist Party Secretary

Dr. Rajan Bhattarai, Secretary of the Communist Party of Nepal (Unified Marxist-Leninist), has expressed surprise over the Prime Minister’s assertion that Nepal has also encroached upon Indian territory. Bhattarai noted that India has never officially claimed that Nepal has infringed on its land. He warned that involving the United Kingdom as a third party in the Nepal-India border dispute would complicate the issue further.
May 29, Kathmandu – Prime Minister Balendra Shah’s recent remarks that Nepal, alongside India, has encroached upon Indian land have stirred significant political upheaval. Opposition parties have demanded disclosure of facts in the House of Representatives, while border experts have refuted the Prime Minister’s statements.
In a brief conversation regarding the issue, Dr. Rajan Bhattarai, a member of the Eminent Persons Group (EPG) established to study the Nepal-India border dispute and Secretary of the CPN-UML, shared his perspective:
You mentioned that the Prime Minister stated Nepal has also encroached upon Indian territory. What is your viewpoint on this?
I am almost certain that India has never formally accused Nepal of encroaching on its territory. Through the EPG, we engaged in discussions with the Indian side for two years, examining various aspects of the Nepal-India border issues. During these negotiations, even when territorial encroachments were raised, the Indian side never alleged that Nepal had encroached upon Indian land. Therefore, it is very surprising and puzzling to hear the Prime Minister suddenly acknowledge from the parliamentary rostrum that Nepal has encroached on others’ land, apparently based on some documents or assumptions.
Second, this is a sensitive and serious issue. We are aware that efforts to reclaim encroached lands have included repeated dialogues and bilateral negotiation teams, yet resolution remains elusive and the problem is becoming increasingly complex. At such a delicate time, it was inappropriate for the Prime Minister to make a casual remark about such a sensitive issue.
Third, the Prime Minister mentioned that discussions are ongoing with England, specifically the United Kingdom, regarding this matter. Historically, when India and Bangladesh resolved their border and Ganges river disputes in 2014, the UK was not involved as a third party. Similarly, the border dispute between India and China, related to the McMahon Line stemming from British-era agreements, does not involve Britain as a third party. India and China are negotiating directly, albeit without reaching a final agreement. Hence, involving a third party in Nepal’s case would not be a solution but would likely complicate matters further.
Has India ever claimed that Nepal encroached its territory, while our Prime Minister says otherwise?
India has never officially or diplomatically asserted that Nepal encroached upon its land. This issue did not arise even in our EPG dialogues. Moreover, we were never called upon by India for discussions on this matter.
What are the implications of the Prime Minister’s remarks?
This adds a new layer of complexity. While we are engaged in dialogue with India to reclaim encroached lands, the Prime Minister’s claim that India has also encroached on Nepalese territory—something India has never formally alleged—could provide India with a political advantage and hinder resolution. It risks escalating the dispute rather than resolving it. The Prime Minister, as the chief guardian of national interest over territorial matters, must realize that such statements could jeopardize Nepal’s sovereignty, territorial integrity, and regional security.
How can this situation be remedied?
The Prime Minister must clarify which specific land he referred to and which documents form the basis of his remarks. Transparency is essential given the sensitivity of the issue.
Do you believe the Prime Minister’s statement was mistaken?
I am fully convinced that such statements do not protect Nepal’s national interests.

Budget Implementation Expected to Boost Economy, Says Chamber

The Nepal Chamber of Commerce has welcomed the new budget, highlighting the increase in the personal income tax threshold and reduction in tax rates as positive measures. The chamber also praised the reduction of customs duties on industrial raw materials and the abolition of excise duties on 360 items. However, it expressed disagreement with the increase in taxes on private educational and health institutions, as well as the hike in customs duties on electric vehicles and gold and silver imports. Kathmandu, 17 Jestha.

The Nepal Chamber of Commerce commented that, overall, the budget for fiscal year 2083/84 is somewhat ambitious, but with effective implementation, the economy could gain the expected momentum. The chamber welcomed the decision to maintain the personal income tax exemption limit at NPR 1 million and to reduce the maximum income tax rate from 39 percent to 29 percent.

The chamber explained that setting lower customs duty rates on 273 types of industrial raw materials compared to finished goods, reducing tiers of customs rates, and abolishing excise duties on 360 items are important steps to simplify the tax system. The budget’s provision exempting involuntary ownership transfers after the death of natural persons from tax, and recognizing capital gains tax on securities of listed companies as final tax, were also viewed positively by the chamber.

Nonetheless, the chamber noted that some budget provisions pose challenges for the private sector. Imposing a 3 percent tax on services provided by private-run educational and health institutions, along with additional taxes and increased fees on electric vehicles, may adversely affect the promotion of clean energy and green transportation. The chamber expressed the expectation that if these positive budget initiatives are implemented effectively, it will significantly contribute to investment promotion, boosting private sector morale, simplifying the tax system, enhancing competitiveness of industries and businesses, and overall economic expansion.

Update on the Message Received from the National Assembly Regarding the House of Representatives Election

The news summary has been reviewed by journalists. Secretary Prakash Adhikari reported in the meeting about the message received from the National Assembly concerning the House of Representatives Member Election (First Amendment) Bill, 2083, despite disruptions. Despite interruptions from opposition parties, Secretary Prakash Adhikari of the House of Representatives presented the information regarding the message received from the National Assembly about the House of Representatives Member Election (First Amendment) Bill, 2083. The next meeting of the House of Representatives has been postponed to convene 15 minutes later today. 17 Jestha, Kathmandu.

Sanyog and Youngi Crowned New National Champions in Table Tennis

Sanyog Kapali of Nepal Police defeated Alex Maharjan to claim the men’s singles title at the 42nd National Table Tennis Championship. Meanwhile, 18-year-old Youngi Paudel from the Armed Police Force (APF) secured the women’s singles title by defeating Ivana Thapa. This tournament crowned new national champions in both the men’s and women’s singles categories. Kathmandu, 30 May.

On Sunday, Sanyog Kapali of Nepal Police and Youngi Paudel of APF won the singles titles at the 42nd National Table Tennis Championship. Both Sanyog and Youngi became national champions for the first time in their respective categories. Among the four finalists in the men’s and women’s singles, the winners were guaranteed to become new national champions.

In the men’s final held at the National Table Tennis Training Center in Lainchaur, Sanyog defeated his clubmate Alex Maharjan in straight sets, 11–5, 13–11, 11–8, 11–1. Previously, Sanyog’s best achievement in national competitions was reaching the semifinals. Rubin Maharjan from Bagmati Province and Himal Bist from Sudurpaschim Province secured third place.

In the women’s singles, Youngi delivered an outstanding performance to claim the title. The 18-year-old, participating in her first national tournament, defeated top-seeded Ivana Thapa of Koshi Province 11–6, 8–11, 12–10, 11–9, 11–8 in the finals. Youngi had also defeated Ivana earlier in the group stage.

The tournament featured 116 players across 10 teams representing all seven provinces and three departmental teams — Nepal Police, Nepal Army, and APF — competing in 11 events across senior, junior, and cadet categories. The victors were awarded prizes at a ceremony by Bhanepa Municipality Mayor Shantiratna Shakya, All Nepal Table Tennis Association President Brijendra Bahadur Hamal, Vice President Purnashankar Shrestha, General Secretary Kuver Prakash Singh, Treasurer Jackey Maharjan, and others.

सीमा अतिक्रमणको घाउ बल्झाउने प्रधानमन्त्रीको अभिव्यक्ति

PM’s Controversial Remarks Spark Debate Over Border Encroachment Issues

News Summary

Prepared after review.

  • Prime Minister Balendra Shah’s statement in parliament claiming Nepal had encroached on Indian land has sparked controversy.
  • Border experts and political leaders have refuted the PM’s claim as baseless and raised objections.
  • Involving England in the Nepal-India border dispute resolution has faced diplomatic criticism.

June 30, Kathmandu – Amid repeated questions from opposition parties accusing him of being unaccountable to parliament, Prime Minister Balendra Shah appeared at the House of Representatives rostrum on Sunday.

During a session addressing questions not strictly related to House rules, the Prime Minister made light remarks on the sensitive Nepal-India border issue, stating that Nepal had also encroached on Indian territory—an assertion that sharply contrasts with statements from former Nepali prime ministers.

According to border specialists and foreign affairs experts, it is surprising for a head of government to publicly admit to infringing upon another country’s land. This statement, made shortly before Rasuwa Pradesh Assembly Chairman Ravi Lamichhane’s visit to India, became a point of contention within parliament.

Let us explore the context and implications of the Prime Minister’s remarks.

In parliament, when UML MP Padma Aryal questioned the government about actions concerning Limpiyadhura-Lipulekh, the Prime Minister mentioned that discussions to resolve issues involved not only India and China but also England. He stated:

“Both governments have had historians and surveyors engage in table talks to find solutions. In this regard, we have engaged not only with India and China but also with the British government. Since problems date back to the time when British India was in charge, we believe England has a stake in this matter. All of this will be resolved diplomatically through table talks.”

Later, during a similar question by Labor Culture Party MP Aren Rai regarding Limpiyadhura-Lipulekh, the Prime Minister remarked that Nepal had also encroached on Indian territory.

He said, “You might find it surprising, but I only understood after becoming Prime Minister that not only has India encroached but Nepal also has encroached on Indian land in many places. Currently, both countries are studying whether we have encroached or they have, and we are ready to sit as friends to find a solution.”

These statements raise two critical questions:

First: Has Nepal actually encroached upon India’s border?

Second: Is England’s involvement necessary as a third party in resolving the border dispute?

Has Nepal encroached on Indian territory?

Following widespread criticism, the Ministry of Foreign Affairs clarified that the Prime Minister’s comment related to cross-border land occupation rather than formal encroachment.

Border expert Buddhi Narayan Shrestha commented, “Nepal has not encroached upon Indian territory. Most border demarcation work has been completed. Some issues arise where rivers have changed course, leading to cross-holding occupation—which means use of land across the border—but it is not encroachment.”

Buddhi Narayan Shrestha

Former Ambassador Neelambar Acharya added, “India denies Nepalese entry into some border areas by stationing its forces there, but Nepal has never stationed its forces on Indian soil. Had Nepal encroached, India would have responded similarly.”

Experts have noted that open borders have sometimes caused disputes. Nepal shares borders with India across 26 districts, with 72 disputed locations. The most sensitive disputes involve the Limpiyadhura-Kalapani and Susta areas.

Border dispute area

Sharma has written, “Nepal has not gained any compensation by encroaching on Indian land; however, India has constructed dams and other infrastructure on Nepalese territory, causing flooding and habitation problems.”

EPG member Dr. Rajan Bhattarai has remarked, “A bilateral team was established in 2016 to address border issues but the problem is becoming more complex. The Prime Minister’s remarks were inappropriate for such a sensitive topic.”

Why was England’s name mentioned in the border dispute?

The Prime Minister suggested that a tripartite mediation is needed in the border dispute. However, former Foreign Minister Narayan Kaji Shrestha commented, “This issue is between two countries. It is not appropriate to involve a third party until bilateral solutions fail.”

Nepal has not formally requested the British government’s involvement regarding the border dispute. The Treaty of Sugauli was signed in 1816 with British India, not contemporary independent India.

Lipulekh area

Border expert Shrestha emphasized that bilateral talks must precede any involvement of a third party mediator, only if these fail should mediation be considered.

Prime Minister Balendra Shah’s experience as mayor and this ongoing controversy appear connected. During his mayoral tenure, after India agreed to trade through Nepalese territory, he displayed a Greater Nepal map at the metropolitan office.

Hotel Association Nepal Welcomes Budget with Tourism Initiatives, Urges Focus on Implementation

Hotel Association Nepal (HAN) has expressed satisfaction with the tourism development programs included in the upcoming fiscal year 2083/84 budget. The association has positively received announcements such as Nepal Tourism Year 2085 and plans to operate international airports in collaboration with the private sector. HAN has requested reconsideration of the electricity value-added tax and removal of government-imposed restrictions on hotel-based programs.

May 31, Kathmandu: Hotel Association Nepal (HAN) responded favorably to the budget for the upcoming fiscal year 2083/84. As a key foundation for economic transformation, HAN has previously acknowledged tourism development concepts, programs, and budget allocations in past national budgets and now voices positive views on these measures. The association has also urged the government to pay special attention to the effective implementation of these programs.

According to HAN’s issued statement, the budget’s emphasis on involving the private sector as a primary development partner is expected to boost capital formation and enhance private sector leadership in investment across current business activities. The association positively views initiatives such as the declared Nepal Tourism Year 2085, Health Year 2027, and tourism destination development plans including Nirvana Path, Koshi Corridor, Danfe, Shaligram, the mid-hill region, and hill station developments.

HAN expressed confidence that programs like the Great Himalayan Trail, preservation of monasteries in Manang and Mustang, and development of regional tourism corridors will help increase tourist numbers, length of stay, and expenditures. The initiative to operate Nepal Airlines under a corporate model is also positively evaluated. Efforts to remove Nepal from the European Union’s blacklist and facilitate entry procedures at border points are believed by the association to contribute to growth in tourist arrivals.

Four Others Accompany Ravi Lamichhane on India Visit: Who Are They?

Ravi Lamichhane, chairman of the Rastriya Swatantra Party (RSP), is set to travel to India starting from 18 Jestha, accompanied by a team. According to party spokesperson Manish Jha, the delegation includes members of parliament Bipin Acharya and Dipak Bohara, as well as Nikita Paudel and Pradeep Acharya. The visit is taking place at the invitation of Nitin Naveen of the Bharatiya Janata Party (BJP), as stated in a press release issued by the spokesperson.

On 17 Jestha in Kathmandu, the RSP formally announced details about the India visit by chairman Ravi Lamichhane. In the press release, Manish Jha informed about the trip scheduled to begin tomorrow. Alongside Lamichhane, RSP parliamentarians Bipin Acharya and Dipak Bohara will be part of the delegation. Additionally, Lamichhane’s wife, Nikita Paudel, and Pradeep Acharya will also participate in the visit, according to the statement.

Lamichhane is set to depart for India tomorrow. The BJP also confirmed through a press release that the delegation is traveling upon the invitation of BJP President Nitin Naveen.

Departmental Teams Dominate Seventh National Fencing Championship

On the final day of the Seventh National Fencing Championship held on Sunday, departmental teams APF and Tribhuvan Army Club secured championship titles across various events. In the Senior Men’s Foil and AP Team events, Tribhuvan Army Club claimed the gold medal. Meanwhile, the departmental team APF also captured gold in the Senior Women’s Foil and AP Team event, showcasing excellent performance.

Kathmandu, 30 May – On the second and final day of the competition, APF topped the Senior Women’s Foil Team event, while Tribhuvan Army Club led the Senior Men’s Foil Team event. The competition took place at Nepal Taekwondo Academy’s hall in Satdobato. The APF women’s foil team consisted of Anita Adhikari, Urmila Lama, Urmila Majhi, and Aisa Shrestha, who secured the gold medal. Gandaki Province earned the silver medal, and Sudurpashchim Province took the bronze.

In the Senior Men’s Foil Team event, the Tribhuvan Army Club team — Anup Bhandari, Narendra Dhami, Bhuvan Malik, and Veersingh Shahi — won gold. The Gandaki men’s team took silver, while Bagmati and Sudurpashchim provinces jointly earned the bronze medal. APF also won gold in the Senior Women’s AP Team event, with team members Tulsa Budhathoki, Maya Chaudhary, Anita Karki, and Januka Syangtang participating.

Tribhuvan Army Club emerged victorious in the Senior Men’s AP Team event as well, with team members Purna Raj Giri, Min Karki, Harka Khadka, and Suraj Singh leading the team to victory. Koshi Province secured second place, while APF and Sudurpashchim shared the third spot. The championship featured a total of 96 players representing six teams: Koshi, Bagmati, Gandaki, Sudurpashchim provinces, alongside departmental teams APF and Army. The winning athletes were awarded their prizes by Siddhi Vanjankar, Senior Advisor to the Minister of Education and Sports.

जेठमै ढकमक्क असारे (फोटो/भिडियो) – Online Khabar

The Allure of Jarul Flowers Blooming Beautifully in Jeth Month

Summary: In Shitali, Ward No. 2 of Mai Municipality, Ilam, the fully blossomed Jarul flowers in the tea gardens have become a major attraction for tourists. These Jarul flowers, which bloom up to an altitude of 2,500 meters above sea level, draw hundreds of domestic and international visitors daily. The tea gardens can be reached after traveling approximately 30 kilometers from Surung in Jhapa via Jamunkhadi. (17 Jeth, Ilam – Shitali) Surrounded by lush green forests, the tea plants spread across the hills are adorned with clusters of purple Jarul flowers. This picturesque view is found in the central tea gardens of Shitali in southern Ilam’s Mai Municipality Ward No. 2. Known locally as Asare flowers, the beauty of these Jarul blooms attracts hundreds of tourists already in the Jeth month.

Visitors arriving in Ilam these days cannot help but notice the fully blossomed Jarul flowers. Locals report that hundreds of both domestic and foreign tourists arrive here each day. Jarul flowers bloom at altitudes around 2,500 meters above sea level and have nearly 48 species worldwide. After traveling about 30 kilometers from the Surung Bridge in Jhapa toward Jamunkhadi, one can reach these tea gardens in Ilam. Ilam is renowned for its tea, and tourists coming to visit the plantations are also enjoying the stunning spectacle of the Jarul flowers. Many visitors take photos and reels against the backdrop of these vibrant flowers, capturing the beauty of this natural phenomenon.

Finance Minister Dr. Swarnim Wagle’s Claims About VAT Multi-Tier System Found to Be Incorrect

The government has implemented a multi-tier system for Value Added Tax (VAT) under Clause 55 of the Economic Bill. Finance Minister Dr. Swarnim Wagle claimed that the government did not impose a multi-tier system, but only applied reduced rates on electricity and ride-sharing services in line with international practice. The Economic Bill grants the government the authority to enforce a multi-tier VAT system at any time by publishing a notice in the Nepal Gazette without increasing the tax rate. Kathmandu, 17 Jestha.

Finance Minister Dr. Swarnim Wagle has provided misleading information regarding the application of a multi-tier VAT system. He stated that the government levied VAT on electricity only at the reduced rate and did not apply any higher rates. He said, “No rate above this is applicable; the multi-tier system has not been implemented by publishing a notice in the Gazette,” however, Clause 55 of the Economic Bill clearly includes provisions for a multi-tier VAT system.

The Finance Minister also mentioned that the government is considering concerns about the impact on certain sensitive goods. He said, “We have not formally implemented the multi-tier system, and this process will not proceed without proper study.” Nonetheless, under Clause 55 of the Economic Bill, a new 5 percent rate has been applied to electricity and ride-sharing services, which is not merely a reduced rate as he claimed.

There appears to be a discrepancy between the Finance Minister’s statements and the provisions stipulated in the Economic Bill. According to Clause 55, the Government of Nepal can establish a multi-tier VAT system without increasing the tax rate by issuing a notice in the Nepal Gazette, and can define taxable goods and services accordingly.

House of Representatives Approves Amendment to Voter List Bill Passed by National Assembly with Majority

The House of Representatives has approved the Voter List (First Amendment) Bill, 2083, which was received from the National Assembly, by a majority vote. Minister for Law, Justice and Parliamentary Affairs Sobita Gautam presented the amendment proposals received from the National Assembly to the House of Representatives. Despite opposition from minority parties, Speaker Dol Prasad Aryal announced the amendment was passed by majority. Kathmandu, 17 Jestha.

During the third meeting of the House of Representatives held Sunday evening, the amendment to the Voter List (First Amendment) Bill, 2083, originating from the National Assembly was passed by majority. Speaker Aryal had put the amendment proposals to a vote. Minister for Law, Justice and Parliamentary Affairs Sobita Gautam submitted the proposals received from the National Assembly. Despite protests from opposition parties, Speaker Aryal declared that the amendment had been adopted with majority support.

Nepal Set to Compete Against Bangladesh in SAFF Women’s Championship Semifinals

Nepal is slated to face defending champions Bangladesh in the semifinal of the ongoing SAFF Women’s Championship in Goa, India. The semifinal lineup was confirmed after India defeated Bangladesh 3-0 in the final match of Group B. Nepal advanced as the winner of Group A, while Bangladesh finished as the runner-up of Group B.

Nepal, having lost to Bangladesh in the finals of the last two editions, now has an opportunity for revenge at the semifinal stage. The SAFF Women’s Championships held in Kathmandu in 2022 and 2024 saw Nepal fall to Bangladesh in the final, denying them the title. In the other semifinal clash, India will compete against Bhutan. Nepal and Bhutan have advanced as the winner and runner-up from Group A respectively, while India and Bangladesh progressed as Group B winner and runner-up. The semifinal matches are scheduled for Tuesday.

बेंगलुरु लगातार दोस्रोपटक आईपीएल च्याम्पियन – Online Khabar

Bengaluru Clinches IPL 2026 Title, Becomes Back-to-Back Champions

Defending champions Royal Challengers Bengaluru defeated Gujarat Titans by 5 wickets to retain the IPL 2026 title. In the final held in Ahmedabad, Bengaluru’s Virat Kohli scored an unbeaten 75 runs while Rasikh Salam took 3 wickets. With this victory, Bengaluru became the third team in IPL history to win consecutive titles.

On June 30, in Kathmandu, Royal Challengers Bengaluru successfully defended their title by overcoming Gujarat Titans in the IPL 2026 final. The match took place at Narendra Modi Stadium in Ahmedabad, where Bengaluru secured a convincing 5-wicket victory. Chasing a moderate target of 156 runs set by Gujarat, Bengaluru reached it in 18 overs losing 5 wickets.

Virat Kohli was the top scorer for Bengaluru with an unbeaten 75 runs off 42 balls, including 9 fours and 3 sixes. Venkatesh Iyer contributed 32 runs. For Gujarat, Rashid Khan took 2 wickets, while Mohammed Siraj, Kagiso Rabada, and Arshad Khan claimed one wicket each.

After losing the toss, Gujarat batted first and scored 155 runs for 8 wickets in their 20 overs. Washington Sundar top-scored with an unbeaten 50, with contributions of 20 runs from Nishant Sindhu and 19 runs from Jos Buttler. Rasikh Salam was the most successful bowler for Bengaluru, taking 3 wickets for 27 runs in 4 overs. Josh Hazlewood and Bhuvneshwar Kumar took 2 wickets each, while Krunal Pandya claimed 1 wicket. Earlier in the season, Bengaluru had also defeated Gujarat in the first qualifier.

Government Should Harness Unprecedented Public Opinion Effectively

At the ‘Himalaya Dialogue’ event held in Dallas, Texas, journalists and writers discussed Nepal’s future, literature, and the role of the diaspora. Senior journalist Sudhir Sharma highlighted that public anger has transformed into trust and emphasized that the combined energy and experience of both the new and old generations will contribute to the country’s development. Journalist Basant Basnet advised the government to utilize the skills, experience, and investments of Nepalis living abroad for nation-building. May 30, Dallas (Texas).

On Saturday in Dallas, Texas, an unprecedented gathering of non-resident Nepalis from various professions, businesses, and fields took place. The primary concern of the gathering was whether the country would progress or not. Organized by Himalaya Khabar and the International Nepali Literary Society (ANESAS) Texas Chapter, the event “Himalaya Dialogue: Conversations about Poetry and Books” featured a second session titled “Where is Nepal Headed?” in which senior journalist and author Sudhir Sharma expressed confidence in Nepal’s progress. He noted that a year ago there was general despair with a sense of helplessness pervading the country. Hatred and anger were widespread. After the Gen Z movement, that anger and hatred transformed into trust, and now the people are optimistic about the country’s future. However, Sharma emphasized that fulfilling public expectations depends on the government’s style of governance.

Journalist Basant Basnet stated that the government must meet public expectations that new leadership should avoid the mistakes of the old political parties. He suggested that the government should annul all previous political appointments and that good governance, accountability, and transparency must be ensured starting from the appointments themselves. Basnet criticized the prevailing tendency to suppress dissenting voices, which had previously been termed coercion and continues today. He stressed the need to halt this practice.

Responding to facilitator Sanjay Ghimire’s complaints about the government and Nepali media’s unkind treatment of non-resident Nepalis’ issues, Basnet acknowledged past shortcomings but expressed confidence that the government would soon respond positively. He further noted that Nepali media has consistently been supportive of non-resident Nepalis’ concerns. Moreover, he highlighted the significant contribution of the diaspora to Nepal’s development. Basnet recommended that the government leverage the skills, experience, capital, and international connections of Nepalis abroad to actively contribute to nation-building.

Finance Minister Responds to Budget Critics: ‘Those Who Do Not Show Extra Affection’

Summary: Finance Minister Dr. Swarnim Wagle clarified that the capital gains tax on shares is final and that a 5 percent tax has been imposed for development of the electricity infrastructure. He stated that the main focus of the upcoming fiscal year’s budget is to expand the middle class and uplift low-income groups to the middle-class level. The government has projected to borrow a total of NPR 6.57 trillion and generate revenue of NPR 15.8 trillion in the next fiscal year.

Kathmandu, 17 Jestha — Finance Minister Dr. Swarnim Wagle referred to budget critics as ‘those who do not show extra affection.’ During the press conference held after the budget announcement, he responded by categorizing people as those who love, show extra love, and those who do not show extra love.

Although Dr. Wagle declared in his budget speech that the capital gains tax on securities transactions is final, provisions made in the Income Tax Act through the Economic Bill 2079, including some thresholds, have led to confusion among share investors. The minister was unable to fully clarify this confusion during the press conference. “Capital gains tax is final; investors were lined up, ready to pay an additional 5 percent,” he said.

In response to investors’ demands, the capital gains tax rate has been generously finalized by increasing from 5 percent to 7.5 percent, and from 7.5 percent to 10 percent, he added. Dr. Wagle admitted he does not understand why the confusion about the tax persists, perhaps due to those who ‘do not show extra affection.’

Despite some ‘confusion’ concerning incomes below NPR 4 million, the minister insists that income derived from shares is final. He explained that taxpayers with income from other sources list capital gains at the time of filing income tax returns, so the tax deduction appears automatic and final.

He acknowledged the possibility of errors or mistakes and assured corrections will be made where necessary but criticized that, “This confusion has been spread deliberately, misinterpreted, and false questions have been raised, which is unacceptable.”