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Kathmandu Friday May 04, 2001 Baishakh 21, 2058.
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Stronger revenue policy urged
Post Report
KATHMANDU, May 3 - With an aim to explore the possible ways by which stronger
and more practical policies for improving the revenue collection could be introduced in
the forthcoming budget, an interaction program, attended by customs and tax officials, was
organized here Thursday.
Participants at the program, entitled "Improvements required in the
forthcoming budget for increasing revenue" stressed the need to introduce
administrative and procedural reforms in the Nepalese tax system. The program was
organized by Revenue Administration Training Centre (RATC).
Participants agreed that there is a strong need for a reduction in
administrative hassles and simplification of its procedural aspects for enhancing of the
overall system of tax administration.
"There is a need to introduce aggressive policies that can act as a
catalyst for higher market effectiveness. In addition, there needs massive change in the
attitude of tax officials who do not hold a good public image," said Dr Bimal
Koirala, Secretary at the Ministry of Finance.
"In the light of increasing expenditure and decreasing foreign aids and
loans, the government must expand its revenue collections," said Koirala while
addressing the program.
He said that the development efforts of the government will receive a major
setback if revenue mobilization is ineffective. Stressing the fragile revenue collection
in Nepal in comparison to other South Asian countries, he said, "The widening
resource gap needs to be narrowed."
On the same occasion, Madhav Raj Pokhrel, Chief Customs Officer of the
Biratnagar Customs, highlighted the problems existing in customs administration. He said
that lack of enough budget has restrained the customs offices from purchasing
underinvoiced goods, though the last Financial Act has empowered the customs office to do
so.
He also said that ineffective implementation of Value Added Tax (VAT) has
encouraged importers in undervaluing their goods. Stressing upon the need to conduct
effective monitoring to see that invoices are issued at the time of purchases.
"Effective market monitoring to nurture the system of issuing sales bills can aid in
increasing customs collection."
Similarly, Iswor Kumar Shrestha, Chief Tax Officer at the Income Tax
Office-2, said that the current tax base is small and the current provisions under the
Income Tax laws are not implemented properly. He further said that the procedural aspects
of tax-clearings have not improved down the lane.
He mentioned that current method of data collection and analysis are weak.
"Accessibility and reliability on data can be enhanced by promoting online multi-user
computer data access based upon permanent account number," he said.
Speaking on the occasion, Dr Srikrishna Sharma, lecturer at Tribhuban
University, said that rebates given on tax expenditures must be limited and income tax
concessions on savings and income should be reviewed.
Sharma further added all economic activities and all income must be brought
under the tax net to enlarge the tax base. "Sectors such as Information Technology,
including cyber trade and e-commerce, must be given incentive tax packages and brought
under the tax net," he added.
Other participants said that the government should set up a tax research
institute and formulate the tax policies based on proper research.
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