NAS-IT presents pre-budget recommendations, calls for 1 pc corporate tax for IT firms

KATHMANDU: Nepal Association for Software and Information Technology (NAS-IT) hosted a pre-budget recommendation press meet on Sunday.

At the programme, the association presented policy suggestions for the upcoming annual budget aimed at boosting the growth of Nepal’s IT sector.

The programme highlighted taxation, policy clarity and human capital, and set out eight major proposals to enable the sector: tax-related reforms; prioritisation of domestic IT companies in government procurement and system development; positioning Nepal as a preferred IT destination; institutional strengthening of IT promotion; education and human capital development; labour-law reform to support agile workforce management in the IT sector; strengthening the ecosystem for product-based IT companies; and updating cyber laws and privacy acts to be future-ready.

In its pre-budget recommendations, NAS-IT has proposed a concessional corporate tax rate of 1% for IT firms over a 10-year period, alongside an 8% export rebate to boost global competitiveness and foreign-currency earnings. The body has also called for clearer VAT provisions and timely refunds to ease operational challenges for exporters.

To retain skilled professionals, it recommended capping personal income tax for IT workers and reform policies around sweat equity and double taxation agreements with major markets.

“Beyond taxation, NAS-IT will prioritise domestic firms in government IT procurement and establish a national IT Promotion Board to coordinate policy and investment,” said Gaurav Pandey, President of NAS-IT. “We want to strengthen IT and AI education, reform labour laws for flexibility, and update cyber legislation to ensure data protection.”

The press meet set out recommendations aimed at positioning Nepal as a competitive global IT destination while fostering innovation, investment and long-term digital growth.