The government has approved tax exemptions on construction materials and imported equipment needed for the second phase of Kathmandu’s Ring Road expansion, removing a key hurdle that had stalled the project for years.
The Cabinet decision allows the Chinese side, which is supporting the project under a grant arrangement, to move ahead without paying customs duties and other taxes on materials and machinery. Officials say the Department of Roads will now begin the formal process for signing the implementation agreement with China. Preparations are expected to be completed by mid-March, with the agreement likely to be signed soon after.