Nepal should adopt a tax system oriented towards economic prosperity

Senior tax expert Dr. Rup Khadka gave a presentation on economic prosperity oriented tax system in an interaction program organized in the premises of Nepal Chamber of Commerce. The event was held on Friday under the chairmanship of the President of Nepal Chamber Rajendra Malla, the Vice President of the Chamber Kamlesh Kumar Agarwal, former Presidents Surendraveer Malakar and Mahesh Kumar Agarwal and other speakers as well as economists and journalists participated.

Highlighting the meeting, Chairman Malla informed that the discussion focused on what kind of policies and rules would be beneficial to the industry and business of the country as a whole if the tax system and VAT system were implemented. On that occasion, Dr. Khadka presented a comparative analysis between the government of Nepal and the value added and other taxes of different countries. He presented an example where the income tax applied in Nepal is higher than other countries including neighboring countries. On that occasion, he suggested that the government of Nepal should adopt a tax system that encourages industrialists, traders and foreign investors. He emphasized that the VAT system is more appropriate than other tax systems and that it should be implemented effectively, considering that it encourages businessmen. He said that such a tax system should be implemented on the profits earned by the investors, so that no problem arises when they bring back the return of the investment. He emphasized that the government should focus on establishing social justice by spending the money collected from taxes in sufficient amount for the benefit of the weaker sections. During the interaction, Dr. Khadka presented appropriate solutions to the practical problems and various queries related to the implementation of various tax systems, including VAT, of Nepal.