Finance Minister Prakash Sharan Mahat has said that there will be no exemption for individuals within the tax bracket.
Minister Mahat recently visited the Inland Revenue Office in Pokhara to oversee its operations. During his visit, Minister Mahat addressed the issue of Value Added Tax (VAT) and expressed the sentiment of those affected by this tax.
In his statement, Minister Mahat acknowledged that some individuals within the tax bracket wish that VAT had not been imposed on them. He explained that VAT is a tax levied on every transaction, and its primary benefit lies in ensuring that all transactions are properly documented and accounted for. Despite the objections raised by some taxpayers, Minister Mahat emphasized that those falling under the purview of this tax cannot be exempted and encouraged the office staff to carry out their duties accordingly.
Minister Mahat expressed optimism about the future, stating that the revenue is expected to increase in the coming year as the economy gains momentum. He attributed this growth to the thriving tourism sector, which has played a significant role in boosting revenue. Minister Mahat expressed confidence in the Inland Revenue Office staff, urging them to fulfill their responsibilities diligently and with a strong sense of duty.
Minister Mahat emphasized the Ministry of Finance’s responsibility to manage and raise funds for the country’s expenditures. He highlighted three primary sources of expenditure: revenue, internal debt, and loans/grants from multinational organizations and countries.
Regarding revenue, Minister Mahat stressed its importance as a foundation for self-sufficiency and stated that efforts should be made to expand its scope. He cautioned against relying excessively on loans and emphasized the need to increase revenue through sustainable means. He clarified that loans and grants, although available, should be repaid using internal income.
Minister Mahat emphasized the importance of increasing production and tax collection to generate more revenue. He urged against resorting to short-term measures or squeezing resources for temporary gains. He believed that sustained production and long-term tax collection would lead to increased revenue, allowing for greater budget allocations towards development and infrastructure, ultimately driving the economy forward.
As an illustration, Minister Mahat referred to the challenges faced in repaying the loans taken for the construction of Pokhara Regional International Airport and Gautam Buddha International Airport. He acknowledged the need to address the issues surrounding these projects, which are currently non-operational, in order to manage the loan repayment effectively.
“Some projects have not achieved the desired outcomes, leading to a situation where the interest payments on loans exceed the allocated budget for development and construction,” Minister Mahat acknowledged. “We currently face the responsibility of repaying 307 billion rupees, including interest, while our capital expenditure stands at only 302 billion rupees. Therefore, it is crucial to focus on revenue generation, and the role of employees is pivotal in achieving this objective,” he emphasized.
