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Table 3.15 Corporation taxes, reductions and exemptions in 2018-19
Activity Tax rate
(…)
Other exemptions and reductions
(…)
Hydropower projects, solar energy projects, waste-to-energy, and wind turbine projects commercially starting generation of electricity by 12 April 2024 (BS end-Chaitra 2080):
- first 10 years;
- next 5 years.
Exempt
50% of applicable rate

The legal framework for standards and technical requirements has not changed since the last Review, and remains the Nepal Standards (Certification Mark) Act, 1980, and, for metrology, the Standards, Weights and Measures Act, 1969. According to the authorities, new legislation on standards and on accreditation is in the process of being prepared. However, this was also the situation in 2012. Other legislation relating to standards and technical regulations includes: (...) the Environmental Act, 1997.

Current policy is set out in the ADS which followed on from the Agriculture Perspective Plan 1995-96 to 2014-15. According to the ADS, the vision of the policy may be summarized as: " (…) sustainable, (...) that drives economic growth and contributes to improved livelihoods and food and nutrition security leading to food sovereignty". To achieve this goal, several objectives are set out for the short, medium, and long term, which include: self-sufficiency in food grains and a trade surplus in agricultural goods; higher productivity; and better nutrition (Table 4.5).

Table 4.5 Indicators and targets for the ADS vision
Indicator 2015 Short-term target 5 years Medium-term target 10 years Long-term target 20 years
(…)
Sustainability
Irrigation (% year-round coverage) 25.2 35 60 80
Soil organic matter (%) 2 3 4 4
Degraded land (million ha) 3.7 2.9 2.6 1.6
Forest cover (% land) 44.7 44.7 44.7 44.7
Land productivity (US$ GDP/ha) 3,278 4,184 5,339 8,697
Agribusiness (% of GDP) 8 9 11 16
(...)

According to the ADS, higher productivity of land and labour is the basis for the Strategy and this requires: "the adoption of appropriate technologies and know-how to increase efficiency and sustainability of agricultural production consistently with market demand and food security needs of subsistent farmers. The measures to raise agricultural productivity include those related to (i) effective agricultural research and extension; (ii) efficient use of agricultural inputs; (iii) efficient and sustainable practices and use of natural resources (land, water, soils, and forests); and (iv) increased resilience to climate change and disasters". (...)

For most of the years under review, the Special Program for Agricultural Production (SPAP) was the largest single item in the Ministry's Budget and accounted for NR 5.1 billion in the Budget for 2017-18. According to the International Food Policy Research Institute (IFPRI), most of these funds are for fertilizer subsidies to producers although fertilizer subsidies are also provided through some other programmes : according to the Budget Speech for 2016-17 a total of NR 5.47 billion was allocated for chemical and organic fertilizers and improved seed and seedlings.

The government-owned Agriculture Inputs Company Ltd (AICL) is responsible for importing and distributing mineral and organic fertilizers with subsidized fertilizer available for up to 0.75 ha in the hills and 4 ha in the Terai. The AICL imports and distributes the fertilizer to its regional offices from which it is released to cooperatives for sale to farmers. According to the discussion paper by IFPRI, the formal supply of fertilizer provides less than 25% of total use.

4.26. The Prime Minister Agriculture Modernization Project (PMAMP) is a ten-year project which started in FY 2016-17. (…)
(…) The Budget also includes an 85% grant for the establishment of (…) organic fertiliser factory and pesticide production centre.

Under the National Mineral Resources Policy 2074 (2017), Nepal's main policy objectives include making the mining and quarrying sector more competitive, sustainable and environmentally friendly by using new and innovative technology; and attracting larger private sector investment by providing incentives and facilities.

Nepal opened up its mining sector to FDI in 1999, on the basis of the Mines and Minerals Act, 2042 (1985) and its Regulations 2056 (2000). Other legislation governing mineral exploration and mining includes: (…) the Environment Protection Act, 2053 (1997) (...)