KATHMANDU, JULY 5
Minister of Finance Prakash Sharan Mahat has emphasised the importance of responsible and diligent work in revenue collection.
During a meeting with employees of the Internal Revenue Department across the nation, Minister Mahat encouraged them to approach their work with high morale, highlighting the need for everyone's commitment to achieving the revenue targets for the current and upcoming fiscal years.
Minister Mahat urged the employees to prioritise prompt and convenient service delivery without seeking personal benefits. He stressed the importance of avoiding negligence in their responsibilities and performing their duties diligently. He also highlighted the need to refrain from engaging in activities that may compromise the state or facilitate personal gains.
Addressing the significance of revenue generation for fulfilling the state's overall needs, Minister Mahat stated that revenue constitutes a substantial portion of the required resources.
He stressed the necessity of increasing the percentage of revenue collection to meet the government's obligations, including salaries, social security, and investment expenses.
Minister Mahat stated that the focus should not only be on expanding scope of revenue but also on expediting fiscal reforms. The government has planned to implement budgetary provisions to ramp up expenditures, and specific proposals have been put forth in this regard.
Highlighting the crucial role of the Inland Revenue Department in revenue and domestic revenue collection, Minister Mahat outlined two methods to expand its scope.
"Firstly, the effective operation of the economic system would naturally lead to increased revenue. Secondly, efforts should be made to bring groups currently outside the taxable bracket into the tax net, thereby increasing tax collection."
Minister Mahat acknowledged the expansion of the tax scope following the introduction of VAT in Nepal but mentioned the challenges associated with the recent expansion of the VAT bracket.
He noted that certain income groups try to avoid falling under the tax bracket, resulting in significant revenue losses.
The minister informed about importance of treating VAT seriously and preventing the improper use of funds provided by taxpayers.
A version of this article appears in the print on July 6, 2023, of The Himalayan Times.
