Kathmandu. The Revenue Advisory Committee has submitted its report to Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel. Revenue Secretary Dinesh Kumar Ghimire, who is also the coordinator of the committee, submitted the report to Finance Minister Poudel.
The committee has suggested that all types of economic activities should be included in the tax system and the tax base should be expanded.
Similarly, it has been suggested to increase the scope of electronic service tax keeping digital transactions in mind, manage the data received from international service providers, classify activities such as real estate transactions as commercial and make taxable.
The committee is of the view that a system should be developed to make the record of capital gains tax technology-friendly and transparent and to maintain inter-linkage of taxpayer data and economic statements.
Stating that there is a need for comprehensive reforms in the customs system, it has been recommended to ensure trade facilitation along with strengthening the tax collection. It has been suggested to review the customs rates and make policy adjustments to protect domestic production, adopt globally recognized standards in the evaluation system, make the customs process more simple, transparent and information technology friendly and use digital systems.
The committee has suggested identifying non-tax sources, revising rates and strengthening the institutional structure to diversify the government’s income. In order to mobilize these resources more effectively, the committee should make rates realistic, make the collection system transparent and digital, and clarify the responsibility of revenue collection.
According to the report, a clear policy and legal basis should be prepared to remove the duplicity seen in the distribution of revenue rights among the federal, provincial and local governments as per the federal structure. It has also been suggested to establish a mechanism for projection, target setting, implementation, monitoring and evaluation of non-tax sources and formulating procedures that are appropriately reflected in the budget.
Finance Minister Poudel said the recommendations made by the committee would be important for the preparation of the upcoming budget.
