Exciting times for Nepal’s IT sector — from AI innovation to telcos and tech start-ups. Here’s everything we’ve captured from Nepal’s Fiscal Budget for 2082/83 (2025/26), which confidently reflects a clear strategic focus on digital transformation, with bold initiatives aimed at strengthening digital infrastructure, encouraging innovation, and modernizing public service delivery through technology.
From the introduction of AI Centers and virtual classrooms to tax reforms supporting IT exports and digital payment adoption, the budget outlines a multi-dimensional approach to making Nepal a more connected, tech-driven economy. This article highlights the most critical ICT, science, and technology-related announcements from the budget—translated and simplified for tech professionals, digital entrepreneurs, and curious minds tracking the evolution of Nepal’s digital ecosystem. TechSansar professionals out here analyzing ins and outs of the Nepal’s budget for tech and science:
1. NPR 7.72 Billion Allocated to Ministry of Communication and Information Technology
The government has allocated NPR 7.72 billion to the Ministry of Communication and Information Technology (MoCIT) for fiscal year 2082/83 (2025/26). This marks a slight increase from the previous fiscal year’s budget of NPR 7.35 billion, although it is still lower than the NPR 8.71 billion allocated in 2080/81.
This funding will support the ministry’s wide-ranging digital initiatives, including:
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Public broadcasting reforms,
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AI and robotic integration in services,
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Startup promotion and digital infrastructure development.
Minister for Communication and Information Technology Prithvi Subba Gurung has previously emphasized the need for strong financial backing to drive innovation and long-term growth in Nepal’s information technology sector.
2. 75% Tax Exemption on Income from IT Service Exports
In a major policy push to promote IT service exports, the government has announced a 75% income tax exemption on revenue generated from exporting information technology services from Nepal. This provision is included in the Nepal Digital Budget 2082, covering the fiscal year 2025/26.
According to Finance Minister Bishnu Poudel, the policy aims to encourage more Nepali professionals and businesses to serve international clients from within Nepal, boosting foreign income and digital employment.
🇳🇵 Final Tax Rate Set at Just 5% for Exported IT Services
Under this new framework:
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Nepali individuals or firms that export IT services from within the country will now pay only 5% income tax on their export income.
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This 5% will be treated as final, meaning no additional taxes or adjustments will apply.
This is expected to:
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Incentivize freelancers, software developers, BPO companies, and digital agencies,
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Formalize and grow Nepal’s digital exports sector, and
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Position the country as a competitive global outsourcing destination under the vision of the ICT in Nepal Budget 2082/83.
3. 5G Services to Begin in Kathmandu Valley and Major Cities
As part of its digital infrastructure goals in the Nepal Budget 2082/83 (2025/26), the government has announced its intention to initiate 5G services in the Kathmandu Valley and other major urban areas. This plan complements the ongoing expansion and quality enhancement of 4G services across the country.
Finance Minister Bishnu Poudel emphasized that launching 5G technology is crucial to supporting future-ready connectivity and enabling next-generation applications in sectors like health, education, and smart cities.
⚠️ Operators Raise Concerns Over 5G Investment Viability
While the government is keen on rolling out 5G, telecom service providers have expressed hesitation due to:
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Declining revenues in the post-COVID digital economy,
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High infrastructure costs associated with 5G deployment,
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Unclear return on investment given current market demand.
Notably, Nepal Telecom, the state-owned operator, has already conducted 5G testing but has yet to begin commercial deployment due to technical and financial constraints.
4. Nepal Telecommunications Authority to Undergo Restructuring
The government has announced plans to restructure the Nepal Telecommunications Authority (NTA), the country’s primary telecom regulatory body. This reform is part of the institutional strengthening goals highlighted in the Nepal Budget 2082/83 (2025/26).
Finance Minister Bishnu Poudel confirmed during the budget speech that this move aims to align the authority’s structure and functions with emerging telecommunication needs, including digital transformation, spectrum management, and regulatory efficiency.
5. IMEI Registration Made Mandatory to Curb Illegal Mobile Imports
To combat the growing problem of illegal mobile device imports and usage, the government has mandated that all mobile phones must have their IMEI (International Mobile Equipment Identity) numbers registered. This enforcement is part of the Nepal Budget 2082/83 (2025/26) and aims to bring transparency and accountability to the mobile device market.
Finance Minister Bishnu Poudel stated that IMEI registration will be required to ensure only legally imported devices are used in the country.
🛑 MDMS Initiative Stalled Amid Corruption Allegations
Earlier, the government had proposed the rollout of the Mobile Device Management System (MDMS) to automate IMEI tracking and regulate imports. However, the implementation has stalled due to:
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Allegations of corruption in procurement of MDMS-related hardware and services,
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Lack of coordination among regulatory authorities, and
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Public concerns over data privacy and execution delays.
Despite these challenges, the current budget reflects a renewed push to revive the regulatory framework and formalize the mobile handset ecosystem in Nepal.
📜 Regulatory Reform After Two Decades
Established under the Telecommunications Act 2053 and Regulations 2054, the NTA has been in operation since Falgun 2053 (February 1997). However, with rapid changes in:
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Mobile technologies (from 2G to 5G),
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Digital platforms and services, and
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Market dynamics,
the government believes it is time to modernize the authority’s structure, policies, and operational mechanisms to better serve the current and future ICT landscape.
6. National AI Center to Be Established in Collaboration with Private Sector
As part of the government’s push toward building a knowledge-based digital economy, the Nepal Budget 2082/83 (2025/26) includes plans to establish a national Artificial Intelligence (AI) Center. The center will be developed in collaboration with the private sector, aiming to boost innovation and practical applications of AI and Machine Learning (ML).
Finance Minister Bishnu Poudel stated that this initiative will lay the foundation for advanced research, experimentation, and deployment of AI technologies in various sectors such as health, agriculture, education, and public service delivery.
⚙️ Promoting the Commercial Use of AI in Nepal
The government also plans to facilitate the commercial adoption of AI technologies, helping businesses integrate smart systems and drive automation. Key goals include:
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Creating an ecosystem for AI startups,
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Offering technical support and access to data, and
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Encouraging AI-driven solutions for national development challenges.
This initiative aligns with Nepal’s long-term vision of becoming a digitally empowered society, and positions the AI Center as a national-level innovation hub under the ICT in Nepal Budget 2082/83.
7. Data Center Operators to Get Land, Uninterrupted Power, and Security Support
To strengthen Nepal’s digital infrastructure, the government has announced a strategic focus on data center development, with provisions to offer land, continuous electricity supply, and physical security to both domestic and foreign investors. This initiative is a core part of the Nepal Budget 2082/83 (2025/26) and reflects the government’s goal of making Nepal a regional digital hub.
Finance Minister Bishnu Poudel highlighted that public-private partnerships (PPPs) will be leveraged to drive the construction, operation, and infrastructure development of data centers across the country.
🌐 New IT Park in Kathmandu and Mid-Hill Feasibility Study
The budget also outlines:
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The establishment of a new IT park in Kathmandu,
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A feasibility study for a data center in the Mid-Hill region, and
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Promotion of infrastructure-backed digital ecosystems to attract tech companies and cloud service providers.
These moves aim to decentralize ICT infrastructure while enabling data sovereignty and local storage capacity for growing digital services.
🖥️ National Data Center Upgrades and Regional Expansion
Key data infrastructure enhancements planned include:
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Upgrading the existing Integrated National Data Center,
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Expanding disaster recovery capabilities in Hetauda, and
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Completing construction of the data center in Kohalpur.
Together, these steps will support government digitization efforts, cloud adoption, and disaster-resilient IT services under the broader vision of the ICT in Nepal Budget 2082/83.
8. NPR 740 Million Allocated to Boost Nepal’s Digital Economy
The government has allocated NPR 740 million in the fiscal year 2082/83 (2025/26) to accelerate the development of digital infrastructure and promote a sustainable digital ecosystem. This move aims to revitalize Nepal’s sluggish progress in building a robust digital economy.
Finance Minister and Deputy Prime Minister Bishnu Poudel, during his budget speech at the Federal Parliament, explicitly stated that Nepal’s digital economy has grown slowly, primarily due to a lack of foundational digital infrastructure.
🧩 Addressing Gaps in Digital Services and Missed Opportunities
Minister Poudel also acknowledged that Nepal has not been able to reap the expected benefits from the potential of service exports through tourism and information technology. To address these gaps, the government plans to:
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Prioritize the expansion of digital infrastructure,
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Enable service exports by building a robust digital ecosystem, and
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Encourage private sector participation through modern platforms and public-sector digital transformation.
These efforts align with the goals of the ICT in Nepal Budget 2082/83, aiming to improve productivity, innovation, and competitiveness in the digital service economy.
9. Five-Year Income Tax Exemption for Green Hydrogen Producers
The government has introduced a significant fiscal incentive to promote clean energy innovation by offering a five-year income tax exemption to green hydrogen producers starting from fiscal year 2082/83 (2025/26). This initiative forms part of the government’s broader strategy under the Nepal Digital Budget 2082 to support sustainable and future-ready industries.
Finance Minister Bishnu Poudel stated that the move is expected to foster investment in alternative energy technologies, help reduce Nepal’s dependence on imported fossil fuels, and position the country in the global green energy movement.
⚙️ Machinery Imports for Green Hydrogen Production Made Tax-Free
To further encourage the development of this sector, the budget also includes a provision for complete tax and duty exemption on all machinery and equipment imported for green hydrogen production.
This dual incentive structure—zero import duties and income tax holidays—aims to:
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Lower entry barriers for new industrial players,
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Promote clean and innovative energy infrastructure,
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Align Nepal’s energy policies with global climate goals and sustainable development.
10. NPR 730 Million Allocated for Startup Loans
In a notable boost for Nepal’s startup ecosystem, the government has allocated NPR 730 million to support startup loan programs in the fiscal year 2082/83 (2025/26). This initiative, part of the broader Nepal Digital Budget 2082, is aimed at encouraging youth to become job creators rather than job seekers.
Finance Minister Bishnu Poudel emphasized that the government will promote innovation-driven entrepreneurship, especially among the emerging Gen-Z generation. The policy aims to nurture a culture of startups grounded in creativity, technology, and market needs.
🚀 Startup Incubation Through Government-University-Private Collaboration
The budget outlines plans to establish incubation centers through partnerships between the government, universities, and the private sector. These centers will:
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Provide structured entrepreneurship support,
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Help transform ideas into sustainable businesses, and
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Create a pipeline of innovation-focused professionals.
This initiative aligns with global best practices for nurturing early-stage entrepreneurs in emerging digital economies like Nepal.
💸 Low-Interest Startup Loans at 3% Interest Rate
To ensure that lack of capital does not hinder innovation, the government will offer startup loans at a subsidized 3% interest rate. These concessional loans will be tied to:
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Skill development programs,
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Business expansion support,
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Market linkage facilitation, and
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Value chain integration.
This financial support is expected to empower young entrepreneurs, accelerate tech-based startups, and contribute to Nepal’s digital and economic transformation goals as envisioned in the ICT in Nepal Budget 2082/83.
11. Government to Leverage Robotics and AI in Advanced Healthcare Services
In a forward-looking move, the government has announced plans to integrate robotic technology and artificial intelligence (AI) into Nepal’s healthcare system starting from fiscal year 2082/83 (2025/26). The goal is to provide state-of-the-art medical services that match global standards, as outlined in the Nepal Digital Budget 2082.
Finance Minister Bishnu Poudel stated that this initiative reflects the government’s commitment to modernize healthcare by introducing intelligent technologies that can enhance diagnosis, treatment, and operational efficiency in hospitals and clinics.
🌐 Expansion of Telemedicine and Digital Health Services
To ensure broader access to quality care, the government will also expand telemedicine and digital health platforms. This is particularly crucial for:
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Reaching rural and underserved populations,
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Reducing the need for long-distance travel for consultations, and
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Promoting technology-enabled healthcare access for all Nepali citizens.
By combining AI, robotics, and digital health, the budget lays a foundation for smart healthcare infrastructure that supports both public health goals and Nepal’s digital transformation roadmap.
12. VAT on Digital Payment Services Removed
In a major shift aimed at promoting cashless transactions, the government has abolished the Value Added Tax (VAT) on digital payment services. This move, part of the Nepal Digital Budget 2082, is designed to reduce costs for users and encourage broader adoption of digital payment systems.
Finance Minister Bishnu Poudel announced that the VAT previously applied to clearing house services for digital payments has now been withdrawn, making it more affordable for both service providers and end users.
💳 Background: Controversy Over VAT on Clearing Services
During the ongoing fiscal year, the imposition of 13% VAT on digital payment clearing and settlement services had sparked criticism from the fintech sector and digital economy advocates.
As a result of the VAT:
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Providers such as NCHL (Nepal Clearing House Ltd.) and Fone Pay Nepal had increased their service fees by 13%.
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These increased costs were eventually passed on to consumers, leading to public backlash.
📈 Boosting a Digital-First Economy
By scrapping VAT on these services, the government aims to:
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Support financial technology (FinTech) adoption,
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Remove barriers for digital wallets, mobile banking, and QR-based payments,
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Strengthen the ICT ecosystem in Nepal, as outlined in the broader goals of the ICT in Nepal Budget 2082/83.
This decision signals a more user-centric and innovation-friendly fiscal policy heading into Nepal Budget 2025/26, aligning with global best practices in promoting a cashless, inclusive digital economy.
13. Digital Tax on Personal Branding and Targeted Advertising Services
In the fiscal year 2082/83 (2025/26), the government has announced that personal branding and targeted advertising services offered through social media and other online platforms will now fall under the scope of digital taxation. This includes influencer marketing, paid promotions, and similar digital engagements that operate with a commercial intent.
The goal, according to Finance Minister Bishnu Poudel, is to expand the tax base to cover all forms of digital transactions under the updated provisions of the Nepal Digital Budget 2082.
🧾 What Falls Under “Electronic Services”?
A proposed amendment to the Value Added Tax (VAT) Act 2059 has expanded the definition of “electronic services” to include:
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Paid personal publicity (such as influencer promotions),
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Targeted digital ads, and
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Other automated internet-based services where IT is essential and human interaction is minimal.
Entities providing such services will now be subject to:
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2% Digital Service Tax (DST), and
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13% Value Added Tax (VAT)
This includes services like:
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Cloud platforms,
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Gaming and mobile applications,
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Online marketplaces,
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Software provisioning.
However, any digital business with annual turnover below NPR 3 million will remain exempt.
🌍 Foreign Tech Giants Already Paying Digital Tax
As of fiscal year 2080/81, global tech companies such as Google, Meta, TikTok, Netflix, Microsoft, Amazon, Apple, and Adobe have already been paying digital service tax in Nepal for revenue generated from Nepali users.
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By mid-Magh 2080 (January 2024), these companies had collectively paid over NPR 410 million in DST.
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One US-based tech giant alone accounted for nearly NPR 1.31 billion in business transactions, according to Nepal’s Large Taxpayer Office.
This reflects a growing trend where international service providers are formally contributing to Nepal’s tax base—a sign of the increasing maturity of Nepal’s digital economy.
14. Government to Launch NTV World Channel for Global Public Broadcasting
In a move to enhance the global visibility of Nepal’s public broadcasting, the government has announced plans to launch an international television channel named NTV World. This initiative, part of the Nepal Budget 2082/83 (2025/26), aims to expand Nepal’s public service content to international audiences, promoting national identity and development narratives abroad.
Finance Minister Bishnu Poudel stated that this expansion will support cross-border engagement and offer a platform for sharing Nepal’s perspectives on global issues through high-quality broadcasting.
🌐 PSB Digital Platform to Modernize Public Broadcasting
Alongside the international TV channel, the government also plans to establish a “PSB Digital Platform” (Public Service Broadcasting Digital Platform). This platform will:
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Digitize and consolidate state-run media services,
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Offer streaming and on-demand content for domestic and diaspora audiences, and
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Strengthen digital public communication infrastructure.
This dual initiative is expected to modernize Nepal’s public broadcasting in alignment with global trends and ensure that state media keeps pace with the country’s digital transformation agenda under the ICT in Nepal Budget 2082/83.
15. Tax Rates on Electric Vehicles to Remain Unchanged
The government has decided to maintain the existing tax and duty rates on electric vehicles (EVs) for the fiscal year 2082/83 (2025/26). This means EV imports will continue under the same cost structure as previous years, reflecting the state’s long-term strategy to promote green transportation.
Finance Minister Bishnu Poudel stated that this decision will encourage the use of electric vehicles, reduce environmental pollution, and increase the consumption of domestically generated electricity — aligning with the goals set forth in the Nepal Digital Budget 2082.
⚡ Reduced Import Duty on EV Charging Equipment
To support the growing EV ecosystem, the budget introduces a favorable provision for those setting up industries to produce or assemble EV charging stations. Equipment required for these industries can now be imported with just 1% customs duty, and no other taxes or charges will apply. This reduces entry barriers for new players in the EV infrastructure space.
This provision aligns with Nepal’s broader goal of becoming a clean energy-driven economy under the umbrella of the ICT in Nepal Budget 2082/83.
🏭 Five-Year Income Tax Holiday for Charging Station Industries
Further boosting local investment, companies involved in setting up charging station manufacturing or assembly industries will be exempted from income tax for five years. This tax incentive is designed to:
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Encourage domestic and foreign investment,
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Strengthen Nepal’s electric mobility infrastructure, and
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Position Nepal as a regional hub for EV-related production and services.
16. Legal Framework to Regulate OTT Platforms
The government has announced plans to formulate a legal framework to regulate Over-The-Top (OTT) services as part of its broader effort to modernize Nepal’s telecommunications and broadcasting policies. This regulatory reform is included in the Nepal Budget 2082/83 (2025/26) and targets platforms that deliver content via the internet without traditional broadcasting infrastructure.
Finance Minister Bishnu Poudel stated that the legal provisions will specifically address how OTT platforms operate within Nepal, ensuring accountability, licensing clarity, and compliance with national media norms.
📱 Regulating Social Media and Digital Platforms
Alongside OTT platforms, the government also plans to introduce structured guidelines for the responsible use of social media and digital platforms. This includes:
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Enforcing ethical content usage,
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Preventing misinformation, and
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Making digital communication orderly and well-regulated.
These regulatory measures aim to bring transparency, control, and cultural sensitivity to Nepal’s increasingly online content ecosystem, aligning with the goals outlined in the ICT in Nepal Budget 2082/83.
17. Virtual Learning System to Be Introduced in Schools
The government has announced that it will implement a virtual learning system in school-level education by developing a new digital learning portal. This step marks a renewed focus on education technology as part of the Nepal Budget 2082/83 (2025/26).
While the Ministry of Education has already been operating a platform called “Shikshya Chautari”, the current budget emphasizes the expansion and enhancement of digital teaching tools to support virtual education grounded in Nepali cultural context.
🏫 Digital Learning Portal to Support Quality Education
According to Finance Minister Bishnu Poudel:
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A new digital learning portal will be developed to support the use of virtual learning in schools.
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The portal will be designed to improve teaching-learning practices while preserving Nepal’s educational identity.
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It will serve as a central hub for curriculum-aligned digital resources and tools.
This initiative aligns with the larger goals outlined in the ICT in Nepal Budget 2082/83 to modernize public education through digital platforms and reduce geographical and resource-based barriers.
🎓 Additional Budget for Scholarships and Inclusive Education
In addition to virtual learning, the budget includes:
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NPR 2.44 billion allocated for student scholarships,
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NPR 10.16 billion allocated for remuneration of ECD teachers and school staff,
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New provision for residential learning facilities for children with disabilities up to the basic education level.
These allocations reflect a holistic approach to inclusive, tech-enabled, and equitable education reform.
Big Promises, Bigger Possibilities
AI centers. Tax breaks. Digital learning. 5G dreams. Nepal’s Fiscal Budget 2082/83 (2025/26) fires on all digital cylinders — and for the country’s tech scene, the signal is clear: go big, go digital.
But ambition alone won’t transform the landscape. The path ahead demands sharp execution, smart partnerships, and bold accountability. Whether you’re building the next startup, coding smarter services, or shaping digital policies — this budget is your cue.
For Nepal’s ICT professionals, entrepreneurs, and digital changemakers, this isn’t just another fiscal outline. It’s a blueprint for a Digital Nepal Decade — and the time to act is now.
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