No tax rates manipulation for appeasing someone-Finance Minister

Kathmandu, May 30: Finance Minister Barshaman Pun clarified the government's stance that the country's economic development will not be possible by subduing the private sector.     

Minister Pun said this at a discussion with the office-bearers of the Iron Rod Producers Association that called on Finance Minister to draw attention on tax rate manipulation.     

He claimed that the government has adopted a policy to incentivize the private sector through the budget.     

A team headed by Association Chairperson Sahil Agrawal complained that injustice has been meted out against them while changing tax rates in the upcoming year's fiscal budget on sponge iron that are used for manufacturing iron rod.     

In response, Minister Pun asserted that the tax rates have been changed on the basis of facts keeping in view the report of the study conducted by the parliamentary committee, the Department of Inland Revenue, demands put forth by the entrepreneurs since the past and the suggestions of the political sector.     

"The decision was not taken at the discretion of the ministers and secretaries or by appeasing anyone", he said, adding, "We believe that our decisions are correct and realistic".     

He also said that the government was not in favour of suppressing the private sector and closing down industries. Minister Pun believed that the decision to change the tax rate will help make the industries competitive.     

He further said that he is ready to listen to the genuine demands and grievances of the entrepreneurs. However, there is no need to make tax rates changes the subject of controversies.     

Minister Pun said that most of the suggestions made by the private sector umbrella organizations, including Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries and Nepal Chamber of Commerce during pre-budget discussions are included in the budget.     

Minister Pun also said the government has conveyed a message that the tax rates should not be increased in consideration of the recent economic slowdown in the country.     

He claimed he has listened to the demands of the private sector and continued the policy in several stances.     

He said, adding, "We have set a very low target this year against 41 percent last year. We have decided the policy on the basis of giving 'space' to the private sector. The private sector does not need to work under pressure", the minister claimed. (RSS)