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‘Govt should continue present economic policy’
KATHMANDU, JAN 01 - A revenue think-tank has recommended that given the current pace of economic recovery that has created a good prospect for a healthy growth rate, the government should continue its economic policy envisaged in its earlier financial ordinance issued in last July.
The Revenue Advisory Committee, in its recommendation over the revenue related matters presented today to Finance Minister Dr Prakash Chandra Lohani, however, has underlined the need to change the present process of revenue mobilization to make it compatible with global standard.
Summing up the recommendations of the committee, Ram Kumar Shrestha, coordinator of the committee, stressed on the need to broaden the income tax net so as to incorporate the sector that has been out of the tax net so far in the tax net.
“Simplification of Income Tax Act, broadening VAT net, enforcement of effective billing mechanism and discouraging the under valuation are some of the challenges of revenue administration,” he said.
He further said that due consideration has been paid to protect competitiveness of exportable industries while recommending tax proposals.
Speaking on the occasion, Finance Minister Dr Lohani stressed that there was no need of major policy level changes since almost all the economic fundamentals are in good position.
He, however, said that certain procedural changes would be adopted to ensure a healthy economic expansion and the upcoming ordinance will take necessary measures to maintain the encouraging economic indicators.
“The committee’s estimation that the overall economic growth rate for the current fiscal year would be around 4.7 percent is very encouraging,” he said.
Rajesh Kaji Shrestha, President of Nepal Chamber of Commerce, stressed for effective implementation of various recommendations of the committee. He also pointed out the need to lower the existing customs rates to realize increase in revenue collection.
Expressing concern over the government’s recent action to enforce the billing system, he stressed on the need to control the ongoing leakage at source.
Binod Bahadur Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry, welcomed the statement that there would be no major policy change in the coming ordinance.
He also underlined that despite the good economic indicators seen in recent time in terms of increased revenue collection and exports, the continuing economic sluggishness is worrisome and urged the government to introduce specific package to put the economy on a sustainable growth path.Posted on: 2004-01-01 02:57
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