KATHMANDU: Finance Minister Swarnim Wagle has defended recent changes to Nepal’s tax system, claiming that the government is steadily making the tax regime simpler, more transparent and business-friendly.
Speaking at a meeting of the Public Accounts Committee under the House of Representatives on Thursday, Wagle said reforms introduced in income tax, excise duty and customs administration represent some of the most significant structural improvements undertaken in recent years.
“Tax-related reforms have been introduced for certain goods, and the overall tax system is being gradually simplified and made more transparent,” the Finance Minister said.
Wagle also rejected allegations that tax rates were altered through amendments to the Economic Bill, arguing that the changes were intended only to address technical omissions and administrative issues.
He clarified that the amendments incorporated previously omitted provisions related to customs duties on carriers used for transporting blood and vaccines, education-related tax arrangements, and road development fee exemptions for electric vehicles (EVs).
Responding to accusations of tax manipulation and irregularities, the Finance Minister said the claims were baseless and politically motivated.
“The issues identified in the Economic Bill do not represent policy changes. They are merely corrections of minor technical errors that occurred at the administrative level,” he said.
Wagle further explained the government’s policy on electric vehicles, stating that concessions on road development fees for EVs priced below Rs 5 million were aimed at making environmentally friendly vehicles more affordable for middle-class consumers and young buyers.
He also dismissed allegations that confidential information had been leaked to vehicle importers before tax changes were announced.
“Claims that traders were given advance information to clear vehicles through customs are unfounded,” he said. “If anyone has evidence of such actions, they should make it public. I am ready to answer.”
The Finance Minister said the government remains committed to strengthening good governance, transparency and accountability by addressing distortions in tax administration, customs operations and revenue management.
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