Issuing a notice in Nepal Gazette, the government raised the income tax by a maximum of 20 percent through Economic Act 2080.
The co-operatives operating in Municipality Area are required to pay 5 percent. Similarly, the cooperatives operating in Sub-Metropolitan are required to pay 7 percent and within the Metropolitan are required to pay 10 percent income tax.
However, saving and credit cooperatives operating in Municipalities are required to pay 10 percent, in Sub-metropolitan areas are required to pay 15 percent and in Metropolitan areas to pay 20 percent tax.
