The government has made a new rule: projects under the US-funded Millennium Challenge Corporation (MCC) will not have to pay income tax. This rule is now official, published in the Nepal Gazette. The Ministry of Finance (MoF) confirmed the new tax exemption. This step is expected to make MCC-related projects easier and faster to run in Nepal. It removes financial barriers that could slow development work. By removing income tax, the government aims to attract smoother implementation of MCC projects, which focus on infrastructure, energy, and roads. Officials believe this could help speed up work and support economic growth.
Some experts say tax exemptions can encourage foreign-funded projects, while others warn that proper monitoring is needed to ensure public benefit. This move shows Nepal is trying to make large-scale development projects more efficient while keeping international partnerships strong.
