No tax rates manipulation for appeasing anyone-Finance Minister

KATHMANDU, MY 31: Finance Minister Barshaman Pun has clarified the government’s stance that the country’s economic development will not be possible by subduing the private sector. Minister Pun made this statement during a discussion held yesterday with the office-bearers of the Iron Rod Producers Association, who called on the Finance Minister to draw attention to 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 they have faced injustice due to changes in tax rates in the upcoming fiscal year’s budget on sponge iron used for manufacturing iron rods.

In response, Minister Pun asserted that the tax rates have been changed based on facts, taking into account the report of the study conducted by the parliamentary committee, the Department of Inland Revenue, demands put forth by entrepreneurs over the years, and suggestions from 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 stated that the government is not in favour of suppressing the private sector or closing down industries. Minister Pun believes that the decision to change the tax rate will help make the industries competitive. He further mentioned that he is ready to listen to the genuine demands and grievances of the entrepreneurs.

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

Minister Pun also conveyed that the government has sent a message that 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 maintained this policy in several instances. He said, “We have set a very low target this year compared to 41 per cent last year. We have decided on the policy based on giving ‘space’ to the private sector. The private sector does not need to work under pressure,” the minister claimed.