Finance Minister sees need for simplification in tax system, policy coordination

Rupandehi, Nov 27: Finance Minister Rameshwor Prasad Khanal has said that structural reform of the tax system, growth in capital expenditure and coordination among economic policies were needed for the nation's economic development.

Minister Khanal said that the country's economy at present has more issues on implementation part rather than policy stability.   

At an interaction programme organized Thursday by Siddhartha Chamber of Commerce and Industry, the Finance Minister said that we have to focus on capital expenditure and implementation of the projects adding that the major challenge of Nepal's economy was the poor spending capacity.

The poor capital spending has created obstruction to development works, he added.  

Khanal opined that simplification of process at every level was inevitable for effective implementation of policy and planning.

Likewise, the Finance Minister stressed that transparency and accountability should be maintained in public spending and project implementation.

Finance Minister Khanal admitted that tax system in Nepal was complicated and full of hassles to lure investment. For more investment to welcome, the tax system should be made simplified, transparent and predictable, Minister Khanal mentioned. 

He was of the view that taxpayers and tax administration should develop confidence, and a fully digitalized system should be made for taxpaying.  

Similarly, he termed the private sector as an engine of economic development and viewed for allowing them to work freely.

On the occasion, Khanal pointed out the need of immense potential for the export of stones and pebbles in a way without damaging the environmental balance.

During the event, Minister Khanal shared that he was making efforts to fully run the Gautam Buddha International Airport adding that the business community in the region has spend billions of rupees after the construction of the airport. 

Prior to this, the business leaders Siddhartha Chamber of Commerce and Industry drew attention of the Finance Minister to run the airport in a full capacity.

Chairman of Siddhartha Chamber of Commerce and Industry Netra Prasad Acharya, President of Federation of Nepalese Chamber of Commerce and Industry of Lumbini Province Krishna Prasad Sharma and others shared their views at the event. (RSS)