Kathmandu, Aug. 19 -- The government's decision to double the annual income-tax threshold to Rs1 million means even some of Nepal's highest-paid public officials will pay no personal income tax this fiscal year.

The government doubled the annual income-tax threshold from Rs500,000 to Rs1 million, effectively taking salaried workers earning up to about Rs100,000 a month out of the income-tax net from this fiscal year. Prime minister, ministers, chief secretary and security chiefs among top officials benefiting from higher tax ceiling. They, however, still have to pay a mandatory one percent social security contribution.

While the higher threshold gives relief to millions of salaried workers, it also takes many of the country's highest-pa...