Bottlers Nepal (Terai) Achieves Major Tax Settlement: A Landmark Move Under Nepal’s New Tax Amnesty Scheme (NPR 780 Million Paid)
23rd July 2025, Kathmandu
In a significant development for Nepal’s corporate sector and tax compliance landscape, Bottlers Nepal (Terai) Limited (BNTL), the authorized bottling partner for Coca-Cola products across the southern plains of the country, has successfully settled a long-standing tax liability with the Government of Nepal. The company announced a substantial payment of NPR 780.66 million (approximately NPR 78 crore), made under the favorable provisions of Section 30 of the Finance Act, 2082 BS. This crucial tax settlement was officially confirmed by the Large Taxpayers Office (LTO) on July 23, 2025 (7th Shrawan 2082 BS), marking a formal closure to a complex financial obligation.
Bottlers Nepal Tax Settlement
Bottlers Nepal (Terai)’s proactive move to settle this significant tax amount demonstrates a strategic approach to corporate compliance and financial management. The company confirmed that it has received the official tax receipt from the LTO, a vital document solidifying the completion of the settlement process.
A key aspect of this settlement is BNTL’s utilization of special provisions within the new tax amnesty policy introduced by the Finance Act, 2082. This policy allowed the company to benefit from a waiver on accumulated interest and penalties. These additional charges, if not waived, often inflate the original tax amount considerably, making a timely settlement far more challenging for businesses.
Specifically, the Finance Act, 2082, under Sub-section (1) of Section 57 of the Income Tax Act, 2058, and incorporated into Section 30 of the current Finance Act, stipulated that any resident entity in Nepal that had undergone a change in ownership and had a reassessed tax liability based on that ownership transition could avail itself of these interest and penalty waivers. The condition for this waiver was the full payment of the principal tax amount by the end of Ashad 2082 (mid-July 2025). Bottlers Nepal (Terai) successfully met this deadline, demonstrating its commitment to timely financial regularization.
Upholding Regulatory Standards and Enhancing Market Standing
Beyond the immediate financial benefits, this tax payment by Bottlers Nepal (Terai) also aligns seamlessly with crucial regulatory requirements governing listed companies in Nepal. Adherence to Rule 26(5) of the Securities Registration and Issue Regulations, 2073, and Rule 22(1) of the Securities Listing Regulations, 2075, is paramount for companies listed on the Nepal Stock Exchange (NEPSE). These regulations mandate that listed companies maintain transparency and remain up-to-date in their financial and tax obligations to ensure good standing and investor confidence in the market. By clearing this major tax liability, BNTL strengthens its legal and regulatory standing, which is essential for its continued operations and reputation in the Nepalese market.
A spokesperson from Bottlers Nepal (Terai) reiterated the company’s commitment, stating, “We are fully committed to fulfilling our responsibilities to the government and the people of Nepal. This tax payment is a reflection of our dedication to transparent and responsible business operations.” This public statement reinforces the company’s emphasis on ethical corporate practices and regulatory compliance.
The Broader Impact: Fostering a Healthier Tax Culture in Nepal
The timely resolution of this tax liability by Bottlers Nepal (Terai) under such favorable provisions has broader implications for Nepal’s fiscal policies and the promotion of a healthier corporate tax culture. The government’s strategic decision to introduce tax amnesty schemes, particularly those offering waivers on interest and penalties for pre-existing liabilities, serves multiple critical objectives:
Revenue Generation: By incentivizing companies to clear outstanding dues, the government effectively recovers significant revenues that might otherwise remain locked in prolonged disputes or become irrecoverable.
Improved Compliance: Such policies encourage businesses to regularize their past tax obligations, fostering a more compliant tax environment. This can lead to a long-term improvement in voluntary tax compliance across the corporate sector.
Reduced Litigation: Tax disputes can be lengthy and resource-intensive for both the government and businesses. Amnesty programs can help reduce the backlog of such cases, allowing the LTO and other tax authorities to focus on current compliance and enforcement.
Enhanced Business Environment: For businesses, clearing tax liabilities, especially without the burden of penalties and interest, provides financial relief and strengthens their balance sheets. This can improve their creditworthiness and overall operational stability, making Nepal a more attractive environment for investment and business growth.
The Large Taxpayers Office (LTO) has officially verified the settlement and issued an acknowledgment to Bottlers Nepal (Terai), confirming the completion of this significant tax case. This formal closure signifies the successful implementation of the tax amnesty policy for BNTL.
Bottlers Nepal (Terai) Limited, as a vital player in Nepal’s beverage industry, contributes significantly to the national economy through its operations, employment generation, and now, through its reaffirmed commitment to tax compliance. This settlement clears a major financial hurdle for the company, further solidifying its position and operational stability in the dynamic Nepalese market. The successful utilization of the tax amnesty scheme by a prominent company like BNTL could also serve as a positive precedent, encouraging other entities with similar outstanding obligations to come forward and regularize their tax affairs, ultimately benefiting the national exchequer and strengthening the country’s economic backbone.
For More: Bottlers Nepal Tax Settlement
