Govt to introduce multi VAT rate from next fiscal year
Biratnagar, January 19:
The government is going to reduce the VAT rate from existing 13 per cent and increase tax on more goods that are currently enjoying tax subsidy from the coming fiscal year, according to joint secretary at the Finance Ministry Rana Bahadur Shrestha.
Speaking at an interaction organised by FNCCI here yesterday to gather suggestions to review the existing VAT system, Shrestha said government is trying to make the VAT system more scientific and contextual. On the occasion VAT expert and revenue advisor to FNCCI Dr Pushpa Kandel said nobody should be eluded that the problems will be solved just by going to multi rates of VAT from the current single rate. He called for a practical and reality-based VAT system.
Coordinator of the Revenue Committee of the FNCCI Pradip Man Baidhya said VAT should be fixed in such a way that it could boost trade, generate more revenue, provide relief to consumers and discourage smuggling along the open Indo-Nepal border.
Other speakers stressed on fixing multi rates of VAT and give priority to consumers and poverty reduction.