Speaking at an interaction in Kathmandu on Monday, Rup Khadka, chairman of High-Level Tax System Review Commission, said the government can levy additional taxes on capable people until quake-hit are capable enough to pay tax.
Citing examples of reconstruction taxes in other countries, Khadka said that such taxes can be levied as surcharge on individual and institutional income tax for the next two fiscal years.Likewise, tax surcharge can be levied on customs duty on luxury items like vehicles and petroleum products. Khadka-led committee, however, is against giving any tax waiver that does not help quake-hit people.
Private sector has appealed to the government not to raise tax rates in the next fiscal year, saying that economic activities have been severely affected.
The government's revenue collection is likely to fall short by Rs 30 to Rs 50 billion in this fiscal year as per the preliminary estimates as economic activities have been badly affected. Officials say it will take time for tourism and trade to rebound to the pre-quake level.
The committee is preparing to submit its final report to the Ministry of Finance by the end of this month.
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