Kathmandu. Revenue Secretary of the Ministry of Finance, Dinesh Kumar Ghimire, has said that the government has increased the customs and tax rates of some items as per its policy of reducing dependence on imports. He said this while speaking at the Finance Committee meeting held at Singha Durbar on Wednesday.
He also mentioned that income tax exemption has been provided to sectors including information technology and hydrogen production through the budget for the upcoming fiscal year.
He also said that Value Added Tax (VAT) is the backbone of the revenue collection system and that taxes are imposed on the basis of the nature of the item. He said that although there are demands for VAT exemption from various industrial sectors, decisions are made based on the government’s overall policy and priorities.
He said, ‘VAT is the main basis for revenue collection for the country. That is the basic policy we have adopted. That is why we have entered into it since 2058 BS because imposing VAT on goods will be effective in revenue collection. There are requests coming from the Ministry of Finance and departments that VAT exemption should be given to our manufactured goods. The government takes a decision after considering such matters.’
‘On behalf of the Ministry of Finance, we take decisions in accordance with the government’s policy that we should promote our industries. In the present bill too, we have identified such areas and given exemptions in income tax, IT sector, hydrogen production and other areas. The government has also increased the tax on imported goods by taking into account the situation of revenue collection. The government will probably take a decision at the appropriate time regarding the concerns and interests of industrialists and businessmen,’ he said.
He expressed confidence that the government would also take an appropriate decision regarding the concerns and interests of Ayurvedic medicine practitioners.
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