Government to form permanent revenue board

Government to form permanent revenue board

The government has moved up to form a revenue board that is envisioned to help determine various concerns related to the country’s existing tax system.

Talking to Republica, the spokesperson of the Ministry of Finance, Uttar Kumar Khatri said that the Cabinet has previously approved forming the board and has issued the formation order in this regard.

As per him, the permanent and independent structure will consist of three members including a representative from the private sector. Khatri told “However, the final structure is yet to be finalized,”

As per him, the board will replace the existing revenue advisory committee that the government forms every year while budget preparation to address the issues of taxation in the line of the government’s financial plan.

The committee that is headed by the joint secretary of the Ministry of Finance, consists of tax experts from several sectors along with the representatives from the private sectors and will advise the government with proper revenue policy and programs in the annual budget and the Financial Act.

Almost now and then, the private sectors have been aiming out the flaws in the government’s tax system, which according to them has headed to a fall in revenue collection and slow business growth.
Rajesh Kaji Shrestha, president of the Nepal Chamber of Commerce, said that traders are now suffering from the burden of excessive taxed by the regional government.

Shrestha termed the prevailing reference price at customs points as ‘impractical.’ He said “The provision has fueled up the grey market, thereby hitting the government’s revenue collection,”

The budget for 2019-20 also tells about making a separate board about the government revenue collection. The Budget states “Revenue Board will be established as a permanent mechanism for conducting revenue related studies/research, for performing tasks of the existing Revenue Consultative Committee, and for providing policy recommendation and operational suggestions to the government,”

At the time the government is striving to meet its revenue target, the government has advanced up forming the revenue board. The statistics of the Financial Comptroller General Office show that the government collected only Rs 433.15 billion from mid-July to mid-January, toward the target of gathering Rs 537 billion.

Although the government attributed the restriction in import following the shortfall in revenue collection, the government seems to be accentuated out for managing the financial resources for the development works.

The ministry officials, though, said that the revenue collection from the internal sources has increased by 25% in contrast to a growth of 20% of previous years due to the government’s new policy.

Conversing at a program on Friday, Finance Ministry Yubaraj Khatiwada too had highlighted the need for the formation of the board. Khatiwada said “The board will investigate and analyze the effectiveness of the existing tax system, identify the new taxable areas and will help solve the underlying problem in the collection of tax revenue,”

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