The Nepal Association for Software and IT Services Companies (NAS-IT) has expressed strong support for the government’s FY 2083/84 budget, which positions the information technology (IT) sector as a core pillar of Nepal’s economic transformation.

In a statement, NAS-IT highlighted several positive policy measures, including tax concessions on IT service exports, improvements in taxation related to sweat equity, a reduction in the top personal income tax rate from 39% to 29%, and the automation of VAT refund processes.

The association also welcomed initiatives such as the expansion of Double Taxation Avoidance Agreements (DTAA), and programs promoting artificial intelligence (AI), innovation, and the digital economy.

NAS-IT thanked the Government of Nepal, the Ministry of Finance, and relevant authorities, stating that these measures will help boost IT exports, increase foreign currency earnings, create high-quality jobs, and position Nepal as a global digital services hub.

However, the organization also noted that some of its key pre-budget recommendations were not included. These include long-term tax stability for the IT sector, a special 1% income tax regime, export incentive credits, preference for domestic companies in government software procurement, and the establishment of a National IT Promotion Board.

According to NAS-IT, the development of local SaaS, cloud, and product-based IT companies, along with targeted international expansion programs, could help Nepal emerge as a regional digital hub.

The association emphasized that a 1% income tax regime is not just a fiscal incentive but a strategic necessity for global competitiveness, especially as countries like the Philippines, Pakistan, Bangladesh, Kazakhstan, and Vietnam continue to offer strong policy support to their tech industries.

NAS-IT expressed confidence that effective implementation of the budget’s positive measures will help Nepal strengthen its position as a global technology hub.