'State Treasury Could Generate Rs 300 Billion More in Revenue if Tax System is Reformed'  

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'State Treasury Could Generate Rs 300 Billion More in Revenue if Tax System is Reformed'  

KATHMANDU: The High-Level Recommendation Committee on Tax System Reforms, formed by the government, has stated that the country could generate an additional Rs 300 billion if the tax systems were revised.

The committee has suggested several changes: eliminating the provision to write off value-added tax on certain goods, amending the existing income tax cap, waiving excise duty except on goods harmful to human health, imposing a green tax, revising the social security tax, and increasing the amount of digital payments while discouraging cash transactions.

The government established the four-member committee under the chairmanship of Bidhyadhar Mallik about nine months ago. The Mallik Committee submitted its report three months ago.

The committee has proposed the establishment of an Implementation Facilitation and Monitoring Unit, to be led by the revenue secretary, for effective implementation of the tax system reform recommendations.

According to the report made public by the Ministry of Finance, if the reform measures were implemented, the country could generate an additional Rs 291 billion in revenue.

Laxman Aryal, Prof Dr Ram Prasad Gyawali, and Shyam Prasad Dahal were the members of the committee. The committee chair Mallik stated that the revenue projection was based on extensive study and sectoral calculations. "This is a tough job but not impossible," Mallik argued.

The upcoming fiscal year's budget has included the idea of implementing the committee's recommendations. Chairman Mallik expressed hope for the implementation of the report's recommendations, reasoning, "The results will be positive if the recommendations are implemented in three to five years."

Similarly, Aryal, a former secretary with extensive expertise in the tax system and revenue administration, stated that the projection of Rs 300 billion in additional revenue is based on the current context and will likely be higher in the future. "The report has clearly outlined how and from where this is possible," Aryal added. --RSS


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