Kathmandu. Chairman of Nepal Chamber of Commerce Kamlesh Kumar Agrawal has expressed confidence that the budget for the coming fiscal year would revive the sluggish economy for a long time. Speaking at an interaction program on the budget organized by the Association of Economic Journalists of Nepal (NAFIJ) on Monday, Chairman Agrawal said that the budget has made remarkable progress in the area of tax reform. According to him, the budget has addressed the tax reforms that have been stalled for a long time.
He said, “The long-sluggish economy will be revitalized. It seems to be presented as a starting point to enter a new era of economic prosperity by giving a new dimension to the country’s economy. Tax reform has been stalled for a long time. The budget has made a big leap forward in tax reform this time. There is a big relief in personal income tax. For many years, we have been confused by giving this tax exemption in the range of 5 lakhs and 6 lakhs to those earning up to 10 lakhs annually. It did not start a transparent economy. This time, our demand was to start with 10 lakhs, which is what the honorable minister has reflected in the budget. ’
Chairman Agrawal termed the government’s move towards the implementation of Multiple Rate Value Added Tax (VAT) system as a bold decision. He, however, expressed dissatisfaction over the imposition of 5 percent VAT on electricity tariff.
He said, “The government has started the system of multi-rate VAT by imposing 5 percent Value Added Tax (VAT) on electricity and ride-sharing. Nepal is a country with abundant potential for water resources, and I felt that there was no need to increase its production. It is also necessary to form a high-level committee to study the relevance of multiple rates in VAT and submit corrections. ’
He expressed the belief that the confusion and confusion surrounding the capital gains tax would automatically be removed if the necessary legal amendment was made.
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