Finance Minister Swornim Wagle Faces Challenges in Fulfilling Election Pledges on Tax Reforms

Kathmandu. During the election campaign, National Independent Party (NIP) Vice-Chairman Swarnim Wagle made two main commitments to voters from various sectors - first, to reduce the 300 percent tax on vehicles. Second, to raise the one percent slab on personal income to 10 lakh rupees.

It is Wagle who is currently managing the economy. As Finance Minister, he also has the main role of fulfilling the promises he made during the election. However, in the upcoming budget, the tax rates are not likely to decrease and the income tax limit is not likely to increase as announced. Officials from the Finance Ministry's Revenue Advisory Committee say that efforts to reduce rates by increasing the tax base have failed, leaving the Finance Ministry unable to adjust tax rates as promised to balance government treasury.