KATHMANDU, Nov 16: Deputy Prime Minister and Finance Minister Bishnu Paudel said on Saturday that the foundation of prosperity of the nation will be determined by the proper utilization of the taxes collected from the general public.
In a program organized by the Internal Revenue Department (IRD) on the occasion of the National Tax Day, Minister Paudel pointed out that paying taxes to the state should be considered a matter of pride as well as a duty by Nepali citizens and instructed the tax administration to collect real taxes.
According to Paudel, it is necessary to modernize the tax system, reduce the tax participation cost of taxpayers, and develop technology-friendly human resources. “It is necessary to take more proactive measures to expand the scope of taxes, to create a taxpayer-friendly environment, to increase the quality of taxpayer services, to increase voluntary tax participation, and to prevent tax evasion and leakage,” Paudel said.
Speaking at the program, Paudel instructed the IRD to take more initiatives for simplifying the work process in risk-based tax examination and research, and business organization and specialization. Similarly, he also directed the department to take more action for effectiveness in service delivery by reducing time and cost while expanding the use of information technology and maintaining its quality and sustainability.
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Minister Poudel expressed dissatisfaction over the observation that although the size of the economy has increased due to the expansion of economic centers, spending units and economic activities, the economy has not been able to grow in accordance with the ratio in which revenue collection should have increased.
Stating that when compared to the goals and progress of assigned performance indicators, the state of progress in the tax sector was not found to be satisfactory, Minister Paudel directed the IRD to further improve the level of performance as the progress of arrears recovery, unwarranted payments, internal and administrative review is not in line with the target.
Referring to the unusual situation in terms of resource management, Minister Poudel added that it is not possible to meet the target by carrying out work in a normal way. He expressed the opinion that it is necessary to carry out the work with the same goal to achieve the revenue target, achieve the progress according to the performance indicators and fulfill the departmental responsibilities.
“Public debt servicing expenses are increasing,” Paudel said, “In such a situation, I would like to draw special attention to the fact that it is mandatory for us to mobilize internal resources effectively, and I would like to urge the IRD to carry out the work in a responsible manner.”
He also urged the private sector to play its role in the government's campaign to fulfill the national aspirations of development and prosperity by increasing tax participation.
“The first tax authority is the taxpayer himself who is, therefore, expected to contribute to increasing the effectiveness of the self-tax assessment system, which calculates and files the tax levied according to the law,” Minister paudel said, “This will reduce the cost not only of the tax administration but also of the taxpayer himself and also bring transparency in economic and business activities.”
Stating that both taxpayers and tax administration should be equally responsible to increase tax participation in an encouraging and voluntary manner, Minister Paudel congratulated the taxpayers and employees who were awarded and honored on the occasion.
