PAC meeting: Finance Minister claims tax system made simple and transparent

Kathmandu, June 11: Finance Minister Dr Swarnim Wagle has claimed that the tax system is being made simpler and more transparent. 

Speaking in a meeting of the Public Accounts Committee (PAC) under the House of Representatives today, he said that the improvements in income tax, excise, and customs systems are some of the most important structural reforms in recent years.

"Some tax-related improvements have been made, gradually making the tax system simpler and more transparent," he asserted.

The Finance Minister denied the allegations that tax rates had been changed by amending the Finance Bill. He clarified that the amendments were made to include issues such as customs rates for blood and vaccine carriers, tax provisions related to education, and exemptions related to road development fees on electric vehicles.

Finance Minister Wagle said that the allegations of tax manipulation and irregularities regarding the amendments made in the Finance Bill are baseless.

While responding to MPs' queries during the meeting, he clarified that the issues seen in the Finance Bill were not policy changes but only corrections of normal technical errors done at the staff level.

Making things clear about the tax structure related to electric vehicles (EVs), Finance Minister Wagle stated that an attempt has been made to provide concessions on road development toll to make EVs worth up to 5 million rupees accessible to the middle class and youth.

"The allegation that electric vehicles were passed through customs after sharing confidential information is baseless. If anyone has such evidence, please make it public, I am ready to respond," he said.

Finance Minister Wagle insisted that the government is moving forward in the direction of good governance and transparency by eliminating distortions in tax administration, customs system and revenue management. (RSS)