Govt plans to collect Rs 1600 billion in revenue in upcoming FY; FM argues for consumption-based tax

Kathmandu / June 1: Finance Minister Dr Swarnim Wagle has shared that it is projected that the gross domestic product would reach Rs 7458 billion when the budget for the upcoming fiscal year is implemented.

At an interaction organised by Nepal Association of Financial Journalists (NAFJ), the Finance Minister opined that the budget for the upcoming fiscal year was brought considering the five-year period, adding that a target has been set to collect around Rs 1,600 billion in revenue in the year 2083/84.

Minister Wagle expressed the view that seven per cent of economic growth could be achieved once the country’s GDP reaches Rs 7458 billion next year.

The government would not withdraw its decision to levy VAT on power consumption for more than 50 units per month, the Finance Minister stated.

He argued that consumption-based tax was an effective tool rather than income-based one and the programmes have been advanced accordingly since they were achievable.

Similarly, Executive Director of Nepal Rastra Bank, Guru Poudel, shared that remittance is the basis of foreign currency reserves, stressing the need for production of domestic goods and the export to make the foreign currency reserves sustainable.

Similarly, President of Nepal Chamber of Commerce, Kamalesh Agrawal, President of Confederation of Nepalese Industries, Birendra Pandey, Vice-President of Federation of Nepalese Chambers of Commerce and Industry, Naresh Lal Shrestha and NAFJ President Menuka Karki welcomed the budget and stressed its effective implementation. RSS