KATHMANDU, June 17: A high-level recommendation committee on tax system reform formed by the government has recommended the removal of all types of tax exemption arrangements within the next 5 years. 

The Government of Nepal had formed the committee on September 15, 2023 under the chairmanship of Bidyadhar Mallik. The committee submitted its report to the Government of Nepal on February 13 earlier this year. The report submitted by the committee has recommended the government to reform the laws by removing all arrangements for tax exemption. 

The government has announced massive tax exemptions for the upcoming fiscal year.

The committee has also recommended keeping the value added tax stable for the next 5 years. However, the committee also suggested reviewing the goods and services entitled for tax exemption. The committee has also recommended the government to expand the tax base by removing tax exemptions. The committee has also asked to bring stability in tax laws.

The Office of the Auditor General has also been suggesting the government to remove the facilities provided by the government through tax exemptions. However, the government has not implemented the suggestions of the OAG. 

 
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