KATHMANDU: The government is preparing to provide relief to around 170,000 borrowers who have been blacklisted by banks and financial institutions after business failures or unintentional cheque-bounce cases, Finance Minister Dr. Swarnim Wagle said.
Speaking at the ‘Citizen, Policy and Leadership’ programme organized by the Rastriya Swatantra Party (RSP) on Thursday, Wagle said the government is working on a legal mechanism to provide relief to those caught in the blacklisting system.
He said discussions are underway with Nepal Rastra Bank and that newly appointed Deputy Governor Dirgha Rawal has been instructed to prioritize the issue and find ways to provide relief to citizens who were blacklisted unintentionally.
Wagle also said the government has expanded tax exemptions for young entrepreneurs to stimulate economic activity amid weak market demand. Under the new provision, income up to Rs 1 million for individuals engaged in information technology will be exempt from income tax, he said.
On cryptocurrency, Wagle ruled out immediate legal recognition of crypto trading, arguing that cryptocurrencies do not fully perform the fundamental functions of money-unit of account, store of value and medium of exchange. However, he said the government would study cryptocurrency mining.
Clarifying the government’s tax policy for hydropower, Wagle said the sector, which has benefited from subsidies and tax incentives for decades, is now being brought into the formal economic system.
