Finance minister says government is making tax system simpler, more transparent

KATHMANDU: Finance Minister Dr Swarnim Wagle today asserted that the government is making the tax system simpler and more transparent, and rejected allegations of manipulation in recent amendments. 

Speaking at the meeting of the Public Accounts Committee (PAC) of the House of Representatives, Minister Wagle said improvements in income tax, excise and customs systems rank among the most important structural reforms in recent years. "Some tax-related improvements have been made, gradually making the tax system simpler and more transparent," he said.

Responding to claims that tax rates were altered through amendments to the Finance Bill, the minister rejected the allegations and said the changes were intended to address specific issues such as customs rates for blood and vaccine carriers, tax provisions related to education, and exemptions for road development fees on electric vehicles.

He called accusations of tax manipulation and irregularities over the Finance Bill unfounded and told MPs that the items seen in the document were not policy shifts but corrections of routine technical errors made at the staff level.

On electric vehicles, the minister said the government has sought to provide concessions on road development tolls to make electric vehicles (EVs) priced up to Rs 5 million more accessible to the middle class and young people. "The allegation that electric vehicles were passed through customs after sharing confidential information is baseless. If anyone has such evidence, please make it public, I am ready to respond," he said.

Minister Wagle added that the government is pursuing good governance and transparency by removing distortions in tax administration, the customs system and revenue management.

(With inputs from RSS)