RAC submits recommendations to Finance Minister Paudel

KATHMANDU: The Revenue Advisory Committee has submitted a report to the Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel.

At a programme organised at the Ministry of Finance today, Revenue Secretary Dinesh Kumar Ghimire, the Committee’s coordinator, handed the report to the Finance Minister.

The Committee has recommended incorporating all types of financial activities into the tax system and expanding the tax base. It also suggested increasing the scope of digital service tax and managing statistics received from international service providers.

Additionally, the report proposed making capital gains tax records technology-friendly and transparent, as well as developing a system that ensures interdependence between tax-related statistics and financial statements.

Pointing out the need for extensive reform in the customs system, the report advised ensuring trade facilitation while strengthening tax collection. It recommended adopting a digital system to simplify and enhance transparency in customs processes.

The Committee also proposed identifying non-tax sources to categorise government income, reviewing tax rates, and strengthening institutional structures. It urged the preparation of clear policies and laws to eliminate duplication in the distribution of revenue-related rights among federal, provincial, and local governments.

On the occasion, Finance Minister Paudel stated that the Committee’s recommendations would play a crucial role in drafting the budget for the upcoming fiscal year.

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