KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent statements from Finance Minister Bishnu Paudel and Minister for Industry, Commerce, and Supplies, Damodar Bhandari, underscore the Nepali government’s urgent focus on enhancing revenue collection and expanding the tax base to strengthen the economy.
Minister Paudel’s call for improved efficiency and modernization within the Inland Revenue Department reflects concerns over declining performance, particularly as the country approaches critical fiscal targets.
Simultaneously, Minister Bhandari advocates for broadening the tax net rather than increasing rates, emphasizing the importance of collaboration among various stakeholders to combat revenue evasion, especially in border regions.
In a broader economic context, the NEPSE Index’s 2.74% increase this week indicates a positive trend in market confidence, despite previous volatility, while Ambassador-designate Chandra Prasad Ghimire’s commitment to boosting exports to the UK highlights an ongoing effort to strengthen international trade relations.
Collectively, these initiatives signal a proactive approach by the Nepali government to bolster its economic framework through improved revenue strategies and enhanced diplomatic ties.
Finance Minister Paudel directs officials to meet revenue target
Finance Minister Bishnu Paudel has directed relevant government officials to work efficiently to meet the set tax collection targets.
He emphasized that the performance of the Inland Revenue Department and its subordinate offices should not fall behind, urging officials to step up their efforts.
Minister Paudel made these remarks while addressing a program on the occasion of National Tax Day, 2081, held in Kathmandu today.
He expressed dissatisfaction with the department’s performance, noting that it had weakened compared to the previous fiscal year. “You must be more serious about achieving the revenue target,” Paudel reiterated.
The Minister outlined several priorities, including the modernization of tax administration, cost minimization, the development of a technologically skilled workforce, and the expansion of the tax base.
NEPSE ends week with 2.74 percent gain
The NEPSE Index wrapped up the week with a 2.74% increase, closing at 2,748.78 after a rise of 73.27 points. In comparison, the index ended last week at 2,675.51, marking a slight decline of 0.08% from the previous week.
During this week, the index reached a peak of 2,788.35 and dipped to a low of 2,680.70, resulting in a volatility of 107.65 points, compared to last week’s volatility of 27.66 points.
The largest intraday gain occurred on Sunday, when the index rose by 62.55 points with a turnover of Rs 9.77 billion; the total turnover for the week amounted to Rs 47.17 billion.
Tax base needs to be expanded
Minister for Industry, Commerce, and Supplies, Damodar Bhandari, stated that the government’s priority is to expand the tax base, rather than raising tax rates.
Minister Bhandari outlined the government’s efforts to broaden the tax net and enhance the tax system.
“A strong state ensures the growth of robust industries and businesses. Therefore, revenue collection must exceed targets to strengthen the state,” he said. “No one is exempt from their obligation to contribute to revenue collection.”
Minister Bhandari also emphasized the need for greater cooperation between industrialists, government officials, and law enforcement agencies to combat revenue evasion, particularly in regions affected by open borders.
Ambassador-designate Ghimire commits to increase exports
Ambassador-designate Chandra Prasad Ghimire has pledged to do everything he can to boost the export of Nepali products to the United Kingdom.
He stated his intention to enhance Nepal-UK relations by strengthening economic diplomacy, encouraging foreign direct investment, and facilitating visits from senior UK officials to Nepal.
NOC increases prices of diesel and kerosene
The Nepal Oil Corporation (NOC) announced a price increase for diesel and kerosene, effective Saturday, raising prices by Rs 3 per liter.
In Kathmandu and Pokhara, the new prices will be Rs 153 per liter for both fuels, while in Dang and Surkhet, the price will be Rs 152, and Rs 150.50 in other regions.
Prices for petrol, gas, and jet fuel will remain unchanged. This adjustment comes in response to recent purchase price changes from the Indian Oil Corporation, which noted an increase of Rs 0.32 per liter for petrol and Rs 2.54 per liter for diesel.
(Prepared by Srija Khanal)
Comment