No changes in tax rate: Finance Minister

Kathmandu / Aug 12: Minister for Finance, Dr Yubraj Khatiwada, has said that though there were challenges in revenue collection for the implementation of budget of the current fiscal year, the rate of tax has not been changed.

During the meeting of Finance Committee of the Parliament held on Sunday, Finance Minister Khatiwada clarified that a policy to widen the ambit of taxes has been forwarded.

He said, “A schedule for the implementation of budget and projects has already been made. The area of tax has been widened as collecting 35 percent more revenue this year as compared to previous fiscal year is a challenging job in itself.”

Sharing the information that the World Bank has assured of increasing assistance amount it has been providing to Nepal, the Finance Minister said Nepal is now heading towards the path of economic development and prosperity by holding three tiers of elections.

Similarly, Finance Secretary Dr Rajan Khanal argued that policy and programme were needed to ensure progress as infrastructure development was not possible only from revenue collection.

He said that Nepal has been bearing Rs 1100 billion trade deficit annually as it failed to maintain balance between imports and exports with the neighboring countries.

Likewise, Secretary at the Natural Resources and Finance Commission, Baikuntha Aryal, said that arrangement of providing grants making population and territory as the main basis has been made.

On the occasion, committee members Dr Baburam Bhattarai and Mahesh Basnet voiced for the formations of National Natural Resources and Finance Committee and amend the existing Public Procurement Act as it has become an obstacle for infrastructure development. The next meeting of the committee will hold at 8:00 am on Tuesday.