KATHMANDU, May 15: The Revenue Advisory Committee has submitted its report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.
In a program held at the Ministry of Finance, Revenue Secretary Dinesh Kumar Ghimire, who is also the Chairperson of the Committee, presented the report to Finance Minister Paudel.
The committee has recommended that all types of economic activities be incorporated into the tax system and that the tax base be expanded.
Revenue Advisory Committee submits report to government
The committee has also recommended expanding the scope of the electronic service tax, considering the rise in digital transactions. It suggested managing data received from international service providers, classifying activities such as real estate transactions into business categories and making them taxable.
Additionally, the committee emphasized the need to make the record-keeping of capital gains tax technology-friendly and transparent and to develop a system for interlinking taxpayer data and economic reports.
The committee has highlighted the need for comprehensive reforms in the customs system. It recommended strengthening tax collection while ensuring trade facilitation. The committee suggested reviewing customs duties and making policy adjustments to protect domestic production, adopting globally recognized standards in the valuation system, and simplifying customs procedures. Additionally, it called for making the customs process more transparent, technology-friendly, and incorporating digital systems.
The report mentions the need to establish clear policies and legal frameworks to eliminate the ambiguities observed in the distribution of revenue rights between the federal, provincial, and local governments as per the federal structure. It also suggests the establishment of mechanisms for forecasting, setting targets, implementation, monitoring, and evaluating non-tax sources, as well as creating procedures that reflect appropriately in the budget.
Finance Minister Paudel acknowledged that the recommendations provided by the committee would be crucial for the upcoming budget preparation.
