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Cabinet decisions: Implementation letter on tax exemption of MCC funding endorsed

Metakhabar by Metakhabar
August 6, 2025
in Business, Featured-news, International, News, Politics
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Nepal Compact Gets Financial Boost: MCC Approves $50 Million in Additional Aid
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Kathmandu : The government has endorsed the implementation letter on mechanisms to implement tax exemption of MCC funding. It is in line with Clause 3 (5) of memorandum of understanding the government had signed with Millennium Challenge Corporation on September 14, 2017. It was one of the decisions the Cabinet meeting took on August 3, according to Minister for Communications and Information, Prithvi Subba Gurung. He shared the Cabinet meeting decisions at a press conference on Tuesday.

The spokesperson of the government further said government would fix the terms of references and incentives to the Chairpersons and Members of two transitional justice commissions. Newly promoted Secretaries- Nirmala Adhikari Bhattarai and Indira Dahal Bhattarai- have been installed at Commission for Truth and Reconciliation Commission, and Nepal Law Commission, respectively.

Chief Executive Officer of Investment Board will be authorized to sign the project review panel (PRP) agreement relating to the Arun-III Hydropower Moblization Development. The PRP will be formed having experts Dr Pavan Kumar Shrestha, Dr Pavan Kumar Bhattarai, and Dr Ganesh Prasad Neupane. The construction and service providing companies registered in Nepal or having branch in Nepal would be exempted income tax in their MCC funding (including the contribution of Nepal) in line with section 18 (910) of the Financial Act, 2082 for the fiscal year, 2082/83. The information on exemption would be made public through the gazette.

The government also decided to endorse a letter of exchange on establishment and operation of the UN Office for Project Service in Nepal. Foreign Secretary will be authorized to sign the letter of exchange for it. Additional Inspector General of Nepal Police, Rajan Adhikari, and the Additional Inspector General of the Armed Police Force, Banshi Raj Dahal, have been permitted by the government to attend an event to be held in Copenhagen, Denmark from September 22 to October 3.

Moreover, the government decided to issue an order banning the materials as per Section 3 (1) of Essential Service Operation Act, 2014 and publish a notice in Nepal gazette. Likewise, the government appointed Anil Raj Poudel as a Vice-Chairperson of Youth and Small Entrepreneur Self-Employment Fund. Furthermore, United Mewa Khola Hydropower Limited has been granted permission to use 3.37 hectare of national forest land for the construction of 132 KV transmission line of the Mewa Khola Hydro Power Project in Taplejung district.

Also, Jalshakti Hydro Power Company Limited has received approval to use 3.632 hectare of national forest land at Ruby Valley Rural Municipality-4 in Dhading district for the construction of Ilep (Tatopani) Khola Hydro Power Project.

As per the Cabinet decision, State Minister for Forest and Environment Rupa BK has been permitted to participate in the IWA International Workshop on Climate-Induced Landslides and Sustainable Recovery to be held from Aug 11-12 in Republic of Korea. Likewise, the Secretary of the Ministry of Communication and Information Technology has been allowed to take part in the 28th Universal Postal Congress to be held from September 8 to14 in the UAE.

Other key decisions of the Cabinet meeting include the approval of- Council for Technical Education and Vocational Training (Fifth Amendment) Regulations-2082 BS, the National Strategy and Implementation Action-Plan-2082 BS and the National Labour Migration Policy- 2082 BS. Additionally, the government has decided to open the Chuli Peak in Sudurpaschim Province for climbing and approved the publication of a notice in the gazette.

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U.S. Embassy Reaffirms Commitment to Strengthening Nepal’s Health Systems
Health

U.S. Embassy Reaffirms Commitment to Strengthening Nepal’s Health Systems

by Metakhabar
August 29, 2025
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Kathmandu – A healthier Nepal begins with strong partnerships. The U.S. Embassy in Kathmandu hosted key health partners last night...

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