Kathmandu: The government has officially endorsed the implementation letter concerning the mechanisms to actualize the tax exemption on Millennium Challenge Corporation (MCC) funding. This move aligns with Clause 3 (5) of the memorandum of understanding signed on September 14, 2017, with the MCC.
According to National News Agency Nepal, the decision emerged from a Cabinet meeting held on August 3, as shared by the Minister for Communications and Information, Prithvi Subba Gurung, during a press conference on Tuesday. The spokesperson detailed that the government would establish the terms of references and incentives for the Chairpersons and Members of two transitional justice commissions as part of the meeting’s resolutions.
Furthermore, newly promoted Secretaries Nirmala Adhikari Bhattarai and Indira Dahal Bhattarai have been appointed to the Commission for Truth and Reconciliation Commission and Nepal Law Commission, respectively. Additionally, the Chief Executive Officer of the Investment Board has been empowered to sign the project review panel (PRP) agreement related to the Arun-III Hydropower Mobilization Development, with experts Dr. Pavan Kumar Shrestha, Dr. Pavan Kumar Bhattarai, and Dr. Ganesh Prasad Neupane forming the PRP.
The Cabinet also decided that construction and service-providing companies registered in Nepal or with branches in Nepal will be exempt from income tax on their MCC funding, including contributions from Nepal, as stipulated in section 18 (910) of the Financial Act, 2082 for the fiscal year 2082/83. This exemption will be publicly announced through the gazette.
Other significant decisions include endorsing a letter of exchange for establishing and operating the UN Office for Project Service in Nepal, with the Foreign Secretary authorized to sign the agreement. Furthermore, Additional Inspector Generals Rajan Adhikari of Nepal Police and Banshi Raj Dahal of the Armed Police Force received approval to attend an event in Copenhagen, Denmark, from September 22 to October 3.
The government also issued an order to ban certain materials under Section 3 (1) of the Essential Service Operation Act, 2014, and will publish a notice in the Nepal gazette. Anil Raj Poudel has been appointed as Vice-Chairperson of the Youth and Small Entrepreneur Self-Employment Fund.
Additionally, permissions have been granted for United Mewa Khola Hydropower Limited and Jalshakti Hydro Power Company Limited to use national forest land for hydro power projects in Taplejung and Dhading districts, respectively. State Minister for Forest and Environment Rupa BK has been authorized to attend the IWA International Workshop on Climate-Induced Landslides and Sustainable Recovery in the Republic of Korea from August 11-12.
The Secretary of the Ministry of Communication and Information Technology will participate in the 28th Universal Postal Congress in the UAE from September 8-14. The Cabinet also approved several other initiatives, including amendments to regulations, national strategies, and policies, as well as opening Chuli Peak for climbing in Sudurpaschim Province, with a subsequent gazette notice.