Widen Tax Net

Tax is the money residents of a country pay its government for the public services it provides to them. Taxes are based on income they make, and they form the main source of revenue for the government. In recent years, Nepal government has been struggling to collect enough taxes as revenues to fund its expenditure. In an effort to turn the table on this dire situation, a High-Level Tax System Reform Suggestion Committee has submitted its final report to the government. The report states that implementation of the suggestions included in the report will help increase revenue mobilisation, create new jobs and improve public finances, says the Ministry of Finance. Among many suggestions made in the report, two stand out: cutting tax rate and widening the scope for more revenue.