Tax rates do not favor specific business households: Finance Minister

KATHMANDU: Finance Minister Dr. Prakash Sharan Mahat explained that the tax rate is not aimed at fulfilling the interests of any business household.

Answering the queries of lawmakers in the House of Representatives on Monday, Dr. Mahat remarked that the budget merely focuses on the national interest and the economy and there is no favoritism toward any specific households.

“Overall, its impact is focused on increasing revenue and making the economy sustainable,” he said.

Recalling that VAT is shrinking in Nepal, he said that as the scope of VAT exemption is increasing, the budget has attempted to correct it.

“We waved VAT every year, it reduced the scope of revenue, it affected the scientific tax system, we have tried to re-enter it,” the Finance Minister added.

Regarding the tax on consumer goods, Dr. Mahat clarified that the tax on consumer goods was imposed to protect domestic producers.

“On the one hand potatoes/vegetables have been imported worth billions of rupees, on the other hand, the domestic products have not got good markets, the budget tried to address the issue,” Finance Minister Mahat said.