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 at a programme organized at the Ministry of Finance today.
The committee has suggested that all types of economic activities should be included in the tax system and the tax base should be expanded. It has also 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 has suggested developing a system to make the record of capital gains tax technology-friendly and transparent and maintain inter-linkage of taxpayer data and financial statements.
Similarly, it has been recommended to ensure trade facilitation along with strengthening the tax collection, stating that comprehensive reforms are needed in the customs system. 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, and use a digital system by making the customs process more simple, transparent and information technology friendly.
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, rates should be made realistic, the collection system should be made transparent and digital, and the responsibility of revenue collection should be clarified.
According to the report, a clear policy and legal basis should be prepared to remove the duplicity seen in the distribution of revenue-related 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 budget for the next fiscal year.
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