Kathmandu, February 3:

Entrepreneurs have asked the government to introduce multiple rates on value added tax (VAT), saying that a single rate is weakening competitive business environment.

They said that VAT rates should not be same for essential and luxurious items. They were speaking at a Lumbini zone level interaction on multiple rate of VAT held at Bhairahawa today. The programme was organised by Siddharthanagar Chamber of Commerce and Industry (SCCI) in cooperation with Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Revenue Advisory Board.

Kush Kumar Joshi, second vice-president of FNCCI, pointed out that multiple VAT rates was essential to protect the domestic industries and would be in favour of consumers. He stressed the need of transparency in tax administration and timely changes in tax policies.