Kathmandu, January 13:

The ministry of finance is all set to release Finance Ordinance 2062-63 to give continuation to the existing budget for the current fiscal year.

According to state finance minister Dr Roop Jyoti, the finance Ordinance 2062-63 would give a new boost to national revenues by strengthening Value Added Tax (VAT).

He said that on the one hand, the government faces the challenge of revenue collection to meet the target, and on the other, customs duties are needed to be reduced as per WTO and SAFTA commitments.

Officials at the ministry of finance said that the government was considering to reduce import tariffs on ‘industrial goods’ which would ultimately benefit consumers despite there being a slight decline in revenue collection.

What is being made compulsory is that the people who carry out any sort of business transactions, small or big, must have Permanent Account Number (PAN). They must also visibly and prominently display a ‘tax-plate’ in their office, said government officials.

To make PAN distribution effective, the ministry of finance is going to work jointly with district chambers and municipal chambers.

However, the state minister said that he is not going to tamper with the VAT threshold fixed at two million rupees currently, but would rather strengthen it.

Meanwhile, there has been a outcry from business sector fearing a huge cut in import tariff that may hurt domestic industries. The state finance minister has already clarified that he would reduce import tariff on some industrial goods.