The government is waiving the penalty fee on the tax dues of those low-business firms that have failed to clear the taxes for a long time. Likewise, the government has also looked forward to allowing such enterprises to pay the due amounts on equal installment basis.
At a time when the government is facing problems of low revenue collection, the government through unveiling ‘Priority and Common Minimum Program of the Coalition Government’ has announced the package for the low-business firms that are unable to settle their tax dues. Citing low business transactions, many entrepreneurs have been delaying to settle tax dues.
The government has also considered incorporating advertising in social media under the tax bracket. Advertisement costs being paid to media houses by the business firms will also be regulated through a proper billing system, the government says.
The low revenue collection has compelled the government to enforce ‘austerity measures’. In this regard, the government has planned to revisit the report of unbundling of the government approved programs and designate the officials concerned with the related work accordingly. It is expected to end the duplication of the manpower on the same jobs in the public administration.
Likewise, the government has also announced to reduce ongoing excessive interest rates citing the exorbitant interest rates are hitting the economy hard. While many private businesses have been refusing to pay the banks’ loans, the cases of defaulting banks’ loans are growing.
The government has also targeted to minimize the spread on the interest rates. Revival of the sick industries and ensuring industrial security are among the government’s priorities.
While the private sector has been exerting pressure on the government to reduce the exorbitant interest rates being charged by the banks, the government seems to be considering addressing the private sector’s woes.
The government also talks about restructuring the existing budget system. The budget system will be restructured policy-wise, structure-wise and execution-wise.
Nepali economy has been reeling under depletion in industrial production and commercial sector, investment risk, liquidity crisis in financial sector, high interest rates, increasing trade deficit, low capital expenditure, declined revenue collection and a notable decline in the index of the secondary market.
Taking approval from parliament the bills on the amendment of Money Laundering Prevention Act and Public Procurement Act will be the government’s priority. Likewise, the government has also expressed concern over amending the necessary laws to ensure the investment friendly environment.
