Looking for a strong revenue structure



Maheshprasad Dahal

Issues such as timely revenue policy, practical tax rates, continuous improvement in tax administration, simplification of tax procedures, investment and business friendly revenue system, trusting environment for the private sector and agility and transparency in service delivery are the foundation pillars for a good tax policy.

In Nepal, the work of tax administration and revenue management has been experienced as complicated and burdensome. On the one hand, there is a need to increase the tax base and scope in the area of ​​effectiveness of revenue policy and result-oriented management, while the challenge is to increase the effectiveness of revenue administration and increase tax and non-tax revenue collection, make the system of tax collection and payment simple, transparent, scientific and timely.

In this context, the challenge is to make the revenue policy investment and business friendly, to create an environment of trust between the revenue administration that collects revenue and the private sector traders, businessmen and taxpayers that pay taxes, to continuously improve the revenue administration and to increase the capacity and efficiency of the agencies and human resources working in the field of tax administration and taxation. are seen In addition to this, we are facing the problems created by the tax and revenue policy that cannot be sustained.

For policy reforms in the overall revenue management of the country, the revenue consultation committee has to discuss and consult with revenue experts, academia and related government agencies in addition to the private sector. According to the provisions of the current formation order, since all those agencies are not represented in the committee, a ‘Revenue Consultative Council’ should be formed to ensure proper representation of private sector umbrella organizations, revenue experts, academics and related government agencies under the committee to institutionalize the principle of policy support and inclusive representation. For this, it is necessary to have an occasional amendment in the formation order.

Nepal, as an advisory and expert body, to provide continuous opinions and recommendations to the Government of Nepal to reduce the cost of tax administration and contribute to economic growth and overall prosperity by formulating an appropriate, timely, investment-friendly, business-friendly and sustainable revenue policy, fully integrating tax administration with electronic technology. The Revenue Advisory Committee should be fully functional. The efforts of the committee should be reflected in the performance of the important role of policy support to advance the country’s revenue management and the overall economy by institutionalizing the actions that have been initiated since the first year of its establishment. (Dahal is the chairman of the Revenue Advisory Committee)

Taksar Magazine, June 2079, pages 57-58


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