RAC submits recommendations to Finance Minister Paudel

Kathmandu: The Revenue Advisory Committee has submitted a report to the Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel.

At a program organised at the Finance Ministry on Thursday, Revenue Secretary Dinesh Kumar Ghimire, the coordinator of the Committee, handed the report to the Finance Minister.

The Committee suggested incorporating all types of financial activities in the tax system and expanding the tax base, as well as increasing the scope of the digital service tax and managing statistics received from international service providers.

Likewise, the committee recommended making a record of capital gains tax technology-friendly and transparent, as well as to develop system maintaining interdependence of tax-related statistics and financial statements.

Pointing out the need of making extensive reform in customs system, the report recommended to ensure trade facilitation along with strengthening tax collection as well as to bring digital system into use making customs process simpler, transparent and information technology-friendly.

The Committee also recommended to identify non-tax sources to categories government’s income, to review tax rate and to strengthen institutional structures as well as to prepare clear policy and laws to remove duplication seen in distribution of revenue-related rights among federal, province and local governments.

On the occasion, Finance Minister Paudel said the recommendations of the Committee would be significant in preparing budget for coming fiscal year.

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