What? Salaried and fixed middle income groups have three good reasons to cheer up in fiscal year 2009/10, starting July 16 2009.First, the budget - planning to spend Rs 285.93 billion in the next fiscal year - has raised the tax exemption limit for individuals to Rs 160,000 and to Rs 200,000 for couples. This has directly raised their net disposable income by Rs 3,750 and Rs 5,000 a month respectively. Secondly, the government has lowered the capital gains tax (CGT) to 10 percent from 15 percent, ensuring people a better return on share transactions in the new fiscal year. This will encourage all share investors and spur secondary market transactions as well.Thirdly, the government has annulled the local development tax (LDT) from Monday. This will instantly reduce the cost of imports by at least 1.5 percent, meaning the prices of imported goods will be slightly cheaper. Revocation of LDT and dropping of CGT will also encourage business, industry and other investors as well. Ups and Do...

The gross domestic product (GDP) of Nepal indicates total domestic production of goods and services produced in a fiscal year that usually starts from July 15. Our national aim- the only objective of the periodic plan- is to increase GDP to alleviate high and rising poverty. Unfortunately, it has remained more or less stagnant since the past several years while our neighbors have attained what is popularly known as double digit growth. The question naturally arises is simple: what wrong have we committed- ignore domestic politics for the moment- that led to shatter our hopes to see Nepal's speedy growth in GDP almost at par with neighbors. We don't have to go far. A brief look of Nepal's basic data and that of India and China as well will clear the issue why we have remained poor, and how long we will continue to remain in such a position except few urbanites that have benefited even from the non development of the country. Let us take the case of India for simplicity as we...